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Olegator [25]
3 years ago
14

Holmes Company produces a product that can either be sold as is or processed further. Holmes has already spent $50,000 to produc

e 1,250 units that can be sold now for $67,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $250 per unit. If Holmes processes further, the units can be sold for $375 each. Compute the incremental income if Holmes processes further.
Business
1 answer:
Xelga [282]3 years ago
6 0

Answer:

It is more profitable to continue processing.

Explanation:

Giving the following information:

The number of units= 1,250

It can be sold now for $67,500 to another manufacturer.

Alternatively, Holmes can process the units further at an incremental cost of $250 per unit. If Holmes processes further, the units can be sold for $375 each.

<u>The $50,000 is a sunk cost, meaning that it has already happened. It shouldn't be taken into account.</u>

Sell as it is:

Income= $67,500

Continue production:

Income= 1,250*(375 - 250)= $156,250

It is more profitable to continue processing.

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Answer:

A.

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Answer:

Predetermined manufacturing overhead rate= $240 per order

Explanation:

Giving the following information:

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Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

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5 0
3 years ago
You work for an accounting firm, and your supervisor is interested in learning more about the proposed tax reforms in your state
masha68 [24]

Answer: An investigative report

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3 years ago
Trace the evolution of legal status of American unions. What activities were restricted by laws and courts? Did constraints incr
dedylja [7]

Answer:

Trace the evolution of legal status of American unions.

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What activities were restricted by laws and courts?

Using the members dues for political purposes.

Did constraints increase or decline with time?

They have decline.

Explanation:

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8 0
3 years ago
The formula for calculating the present value factor for an annuity of $1 is a. Amount to Be Invested/Equal Annual Net Cash Flow
Rus_ich [418]

Answer:

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