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Stells [14]
3 years ago
7

At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally

sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Business
1 answer:
butalik [34]3 years ago
3 0

Answer:

Net Income  Bargain Electronics would realize by accepting the special order is  - $ 24,000

Explanation:

Bargain Electronics is operating at full capacity, therefore the fixed costs are relevant at this decision.

<u>Incremental Costs and Revenues - Special Order 3000 units</u>

Sales ( 3000 × $25)                                     75,000

Variable Cost (3000× $20)                         (60,000)

Fixed Costs (3000× $10)                             (30,000)

Shipping Costs ( 3000×$3)                          (9,000)

Net Income                                                   -24,000

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Answer:

$9,400

Explanation:

For computing the maximum contribution margin we need to do following calculations

Contribution Margin

Product A = ($12 ÷3) = 4

Product B = ($5 ÷ 1) = 5

Product C = ($9 ÷ 2) = 4.50

So, the ranking order would be product B > product C > product A

Now

Total machine hours available = 2,100 hours

And,

Time for making 500 units of B

= 500 × 1

= 500 hours

For making 500 units of C, the time taken is  

= 500 × 2

= 1000 hours

So the remaining hours left is

= 2,100 hours - 1,000 hours - 500 hours

= 600 hours  

So, for A the manufactured is

= 600 ÷ 3

= 200

And, finally the Maximum contribution margin  is

= (200 × $12) + (500 × 5) + (500 × 9)

= $2,400 + $2,500 + $4,500

= $9,400

7 0
3 years ago
George's Chemicals allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufactu
ale4655 [162]

Answer:

$256,284

Explanation:

The computation is shown below:

First, Calculate the predetermined overhead rate per hour which equals to

=  (Estimated manufacturing Overhead cost ÷ estimated machine hours)  

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4 0
3 years ago
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Answer:

B. Economic infrastructure

Explanation:

Economic infrastructure -

It is the activities and the facilities that helps the development and operations of various sectors of the society , is referred to as economic infrastructure.

Economic infrastructure plays a major role in the proper functioning of the economy.

The enables to increase the productivity of the economy .

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7 0
3 years ago
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Answer:

Price earning ratio= 8  times

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Price per share = 56, EPS =?

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7,000,000/1,000,000= $7  per share

Price earning ratio = 56/7= 8  times

Price earning ratio= 8  times

                         

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