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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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What is authenticity in the often-used framework of quality criteria?
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4 0
3 years ago
The managers of a popular software firm believe in trusting their subordinates to perform effectively rather than monitoring the
disa [49]

Answer:

Decentralized control

Explanation:

Decentralized control -

It refers to the method adapted by the organisation or company , in which the  lower level elements helps completely to attain certain goal or task , is referred to as decentralization control

In this case , the people in the higher post need not rule over the lower one to complete the project or task on time .

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3 0
4 years ago
Vonda and Aleiyah are shopping together at the mall for new jeans. Vonda is willing to pay $90 and Aleiyah is willing to pay $50
Gala2k [10]

Answer:

A. $60

Explanation:

Recall that, consumer's surplus refers to the price that a consumer is willing to pay less the amount he or she actually pays.

Thus

Consumer surplus = maximum price willing to pay - actual market price.

Given that

Market price = $40

Vonda is willing to pay = $90

Aleiyah is willing to pay = $50

Hence.

Vonda consumer surplus = 90 - 40

= $50

Aleiyah consumer surplus = 50 - 40

= $10.

Total consumer surplus = 50 + 10

= $60.

8 0
3 years ago
Prime Corp. has an ending balance in the accounts receivable account of $100,000. Prime recorded bed debt expense of $3000. Prim
Lelu [443]

Answer:

True

Explanation:

Prime's net realizable value of accounts receivable = accounts receivable balance - allowance for uncollectible accounts = $100,000 - $7,000 = $93,000

Bad debt expenses have already been debited, so they are no longer part of the allowance for uncollectible accounts.

5 0
3 years ago
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