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anzhelika [568]
3 years ago
12

Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs ar

e $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.
A. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order." Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
B. Briefly explain the reason why accepting this additional business will increase operating income.
C. What is the minimum price per unit that would produce a positive contribution margin? If required, round your answer to two decimal places.
Business
1 answer:
max2010maxim [7]3 years ago
3 0

Answer:

A

Explanation:

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Read 2 more answers
Mission Foods produces two flavors of tacos, chicken, and fish, with the following characteristics:
postnew [5]

Answer:

1. $858,000

2. Chicken = 24,000 units and Fish = 36,000 units

Explanation:

The computation is shown below:

1. The anticipated level of profits for the expected sales volumes is

= Expected sales of chicken × (Selling price per taco - Variable cost per taco) +  Expected sales of fish × (Selling price per taco - Variable cost per taco) - total fixed cost

= 200,000 × ($3 - $1.50) + 300,000 × ($4.50 - $2.25) - $117,000

= $300,000 + $675,000 - $117,000

= $858,000

2. The break even volume is

Let we assume the sale units be X

So, total units sold for chicken = 40X

And, for the fish it is = 60X

Sale units of chicken × (Selling price per taco - Variable cost per taco) + Sale units of chicken × (Selling price per taco - Variable cost per taco) = Total Fixed cost

0.40X × (3 – 1.50) + 0.60X × (4.50 – 2.25) = $117,000

0.60X + 1.35X = $117,000

1.95X = $117,000

So, the X is 60,000 units

So for chicken it is 60,000 × 40% = 24,000 units

And for fish it is 60,000 × 60% = 36,000 units

7 0
3 years ago
Every morning, peter goes to one of the nearby convenience stores and buys a carton of levin's chocolate milk for breakfast. whe
Nady [450]

Answer:

a. brand loyalty

Explanation:

  • As Peter goes to the nearby shop every day and buys the same brand carton of levins chocolate milk for breakfast this shows that the peters are a brand loyal customers as he goes without the milk if not buying the popular brand.
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