1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Juliette [100K]
3 years ago
12

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34

,000 Rets per year. Costs associated with this level of production and sales are given below:
Unit Total
Direct materials $ 25 $ 850,000
Direct labor 6 204,000
Variable manufacturing overhead 3 102,000
Fixed manufacturing overhead 7 238,000
Variable selling expense 2 68,000
Fixed selling expense 6 204,000
Total cost $ 49 $ 1,666,000

The Rets normally sell for $54 each. Fixed manufacturing overhead is $238,000 per year within the range of 25,000 through 34,000 Rets per year.

Assume that due to a recession, Polaski Company expects to sell only 29,000 Rets through regular channels next year. A large retail chain has offered to purchase 7,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have to purchase a special machine to engrave the retail chainâs name on the 7,000 units. This machine would cost $14,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. Determine the impact on profits next year if this special order is accepted.
Business
1 answer:
Tpy6a [65]3 years ago
5 0

Answer:

$69020

Explanation:

Selling price -$54

Incremental selling price =54*(1-0.16)=45.36

Incremental sales - 45.36*7000= 317520

Contribution -

Direct materials = 24*7000 =     (168000)

Direct labor = 6*7000 =              (42000)

Variable manufacturing =           (21000)     (3*7000)

Variable selling price =                (3500)        2*(1-0.75)

Total contribution =                      83020

Additional cost of machine       (14,000)

Incremental profit                        69,020          

You might be interested in
A cost is $11,000 at 1,000 units, $12,000 at 2,000 units, and $13,000 at 3,000 units. Using the high-low method, how much is the
Misha Larkins [42]

Answer:

Fixed costs= $10,000

Explanation:

Giving the following information:

Highest activity cost= $13,000

Highest activity= 3,000 units

Lowest activity cost= $11,000

Lowest activity= 1,000 units

<u>To calculate the unitary variable cost and total fixed cost, we need to use the following formulas:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (13,000 - 11,000) / (3,000 - 1,000)

Variable cost per unit= $1

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 13,000 - (1*3,000)

Fixed costs= $10,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 11,000 - (1*1,000)

Fixed costs= $10,000

6 0
3 years ago
A hospital revenue bond issue is being underwritten on a negotiated basis. The offering consists of $100,000,000 par value of te
GenaCL600 [577]

Answer:

The syndicate member earns $20.

Explanation:

When bonds are sold directly to the public, the syndicate member earns the total takedown. Total takedown refers to the selling concession plus the additional takedown $22.00 + $20.00 = $42.00.

In this question, it indicated that a selling group was used to find customers. This means that the syndicate member will not earn the total takedown because he has given up his selling concession of $22.00 to the selling group member, leaving the syndicate member to earn only the additional takedown of $20.

3 0
3 years ago
Lara Technologies is considering a cash outlay of $227,000 for the purchase of land, which it could lease out for $36,150 per ye
HACTEHA [7]

Answer:

the opportunity cost of the land purchase is $34,050

Explanation:

The computation of the opportunity cost of the land purchase is shown below;

= Cash outlay × return percentage

= $227,000 × 15%

= $34,050

Hence the opportunity cost of the land purchase is $34,050

We simply multiplied the cash outlay with the return percentage so the same would be calculated

6 0
2 years ago
You and your twin sister, both 18 years of age, were in a car accident. She had a clean break across the humerus and the upper a
tigry1 [53]

Answer:

B) You will be given antibiotics to reduce bacterial infection, whereas your sister will not.

Explanation:

Since you required pins to be inserted (your skin was injured), the possibility of an infection exists. In order to try to prevent or control any bacterial infection, you need to take antibiotics.

On the other hand, your sister doesn't need to take antibiotics because her skin wasn't hurt.

7 0
3 years ago
The actual cost of direct materials is $10.50 per pound. The standard cost per pound is $11.75. 42) During the current period 10
emmainna [20.7K]

Answer:

Direct materials efficiency variance =  1175 unfavorable

so correct option is C) $1,175 unfavorable

Explanation:

given data

actual cost = $10.50 per pound

standard cost per pound =  $11.75

current period  = 10,000 pounds

purchased = 11,500 pounds

actual units produced = 9,900 pounds

to find out

direct materials efficiency variance

solution

we get here Direct materials efficiency variance that is express as

Direct materials efficiency variance = Standard rate × ( Standard quantity - Actual quantity )     ..................1

put here value in equation 1 and  we get

Direct materials efficiency variance =  11.75 × ( 10000 - 9900 )

Direct materials efficiency variance = 11.75 × 100

Direct materials efficiency variance =  1175 unfavorable

so correct option is C) $1,175 unfavorable

3 0
3 years ago
Other questions:
  • Brady recently graduated from SUNY–New Paltz with his bachelor’s degree. He works for Makarov &amp; Company CPAs. The firm pays
    6·2 answers
  • What is a commission?​
    14·1 answer
  • Primary liability is .
    8·1 answer
  • Munoz Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different u
    8·1 answer
  • This is an example of an?
    7·1 answer
  • Creative Sound Systems sold investments, land, and its own common stock for $32.0 million, $15.2 million, and $40.4 million, res
    9·1 answer
  • International standards are used in supply chain to....
    7·1 answer
  • Risk vs reward sim
    13·1 answer
  • Scott used $4,000,000 from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year,
    7·1 answer
  • Which of the following would constitute a technological improvement?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!