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dedylja [7]
3 years ago
8

Company A manufactures a moderately priced set of lawn games that sells for $125. The company currently manufactures and sells 2

,000 sets per year. The manufacturing costs include $40 for direct materials and $15 for direct labor per set. The overhead charge per set is $12, which consists entirely of fixed costs. Company A is considering a special purchase offer from a large retail firm, which has offered to by 500 sets for two years at a price of $110 per set. Company A has the available plant capacity to produce the order and expects no other orders or profitable alternative uses of the plant capacity. What is the total relevant cost per unit to produce the units requested by the retail firm
Business
1 answer:
AfilCa [17]3 years ago
5 0

Answer:

$27,500

Explanation:

As mention in the question the company selling the 2000 seats

also the manufacturing cost is =$40

Direct labor cost =$15

As the seat company  A =500 seats

So the Direct Material Cost= seat company  A allotment *manufacturing cost

=500*40

=$20,000

Also the Direct labor cost =seat company  A allotment *direct labor cost

=$500*$15

=$7500

Therefore the total relevant cost of the firm is

=Direct Material cost +Direct labor cost

=$20,000+$7500

=$27,500

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In the following case, either a recessionary or inflationary gap exists. Assume that the aggregate supply curve is horizontal, s
KengaRu [80]

Answer:

This is a recessionary gap of $60 billion.

Simple multiplier = 1/ (1-.75) = 1/.25 = 4

The government would then have to increase its spending on goods and merchandise by total gap divided my simple multiplier.

$60 billion/ 4 = $15 billionTransfer multiplier - Each dollar of a Transfer payment will increase real GDP by Transfer Payment Multiplier

= MPC / (1-MPC) = 0.75 / (1-0.75) = 0.75/0.25 = $3

The government must increase spending on transfer payments by total gap divided by transfer payment multiplier = $60 billion / $3 = $20 billion

6 0
3 years ago
Dan has a personal umbrella policy with a $1 million limit. The self-insured retention is $250. Dan has a homeowners policy with
alekssr [168]

Answer:

The personal umbrella policy is excess liability insurance that provides protection against legal liability that is over and above that provided by auto, home, and boat insurance. People with significant assets need an umbrella liability policy to cover lawsuits that can sometimes amount to millions of dollars.

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Explanation:

5 0
3 years ago
Darla owns a dress shop called Darla's Darling Dresses. During the past year, Darla sold some assets to upgrade her facility. Sh
Alexxx [7]

Answer:

Darla's amount realized on the sale is $800

Adjusted basis in the assets sold is $300

Producing a realized gain on the sale of $500

Explanation:

Amount realized = cash received + FMV of other property + buyer’s assumption of seller’s liabilities – seller’s expenses

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Adjusted basis = 2500-2200 = $300

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Cash paid to retire notes $ 112​ Common shares acquired for treasury 172​ Proceeds from issuance of preferred stock 254​ Proceed
arsen [322]

Answer:

$176 million

Explanation:

The calculation of net cash inflows from financing activities is shown below:-

Net cash inflows from financing activities

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Proceeds from issuance of subordinated  bonds $292 million

Less: Cash dividends paid on preferred stock (86) million

Less: Cash paid to retire note ($112) million

Less: Common shares acquired for treasury (172) million

Net cash inflows from financing activities $176 million

The positive sign represents the cash inflow and the negative sign represents the cash outflow

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