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fgiga [73]
3 years ago
7

Eley Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's nor

mal activity level of 59,000 units per month is as follows: Direct materials $52.10 Direct labor $10.00 Variable manufacturing overhead $3.00 Fixed manufacturing overhead $21.10 Variable selling & administrative expense $5.60 Fixed selling & administrative expense $27The normal selling price of the product is $124.10 per unit.An order has been received from an overseas customer for 3,900 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $3.10 less per unit on this order than on normal sales.Direct labor is a variable cost in this company.Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 1,650 units for regular customers. The minimum acceptable price per unit for the special order is closest to:$124.10$101.70$69.10$90.19
Business
1 answer:
vesna_86 [32]3 years ago
5 0

Answer:

$90.19

Explanation:

Direct material = 52.10

Direct labour = 10

Variable manufacturing = 3

Fixed manufacturing = 21.10

Variable Admin expenses = 5.60

Fixed admin expenses = 27

Selling price = 124.1

Profit=5.3

Contribution per unit = 53.4

New order = 3900

Direct material 52.1

Direct labour =10

Variable manufacturing = 3

Variable admin expenses = 2.5

total unit variable cost = 67.6

total variable cost =3900*67.6 = 263640

Loss contribution =1650*53.4 =88110

=263640+8810 =351750

351750/3900

=$90.19

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Forest Components makes aircraft parts. The following transactions occurred in July.
rjkz [21]

Answer and Explanation:

Answer and explanation attached

Beginning raw materials = ending raw materials +raw materials for production+issued raw materials- raw materials purchased -raw materials returned from production= $79800

Cost of goods manufactured =ending finished goods+cost of goods sold -beginning finished goods= $553000

Beginning work in progress inventory=

Ending work in progress + cost of goods manufactured + materials returned - manufacturing overhead applied- issued raw materials-direct labour wages =$105490

4 0
3 years ago
During the current year, Ecru Corporation is liquidated and distributes its only asset, land, to Kena, the sole shareholder. On
statuscvo [17]

Answer:

c. Kena recognizes a gain of $30,000

Explanation:

cash  650,000 debit

  land 250,000 credit

  gain at disposal 350,000 credit

liabilities 500,000 debit

        cash        500,000 credit

Then, the company will close all account and leave kena account with a capital of 150,000 to mathc the remaining 150,000 cash

as her basis is 120,000 there will be a gain for 30,000

4 0
3 years ago
Farmer Joe is planning to purchase a new hog farm. He anticipates making $20,000 the first year, $25,000 the second year and $30
Pachacha [2.7K]

Answer:

The simple rate of return is 37.5%

Explanation:

Simple rate of return is the percentage of return on investment that takes the net annual return cash flow of an investment and compare with initial capital of the investment. It is calculated with this formula:

<u>Total annual return - Depreciation expense</u>

                Initial capital outlay

For farmer Joe, the simple rate of return is:

<u>$20,000 + $25,000 + $30,0000 -$0</u>     x   100

                    $200,000

=   <u>$75,000</u>  x 100

   $200,000

= 37.5%

Depreciation expense is assumed to be zero.

6 0
3 years ago
Which of the following is likely to occur as the result of the law of diminishing marginal​ utility? A. ​Petra's utility from he
Rus_ich [418]

Answer:

The correct answer is option C.

Explanation:

The law of diminishing marginal utility means that keeping other things at constant the marginal utility derived from the consumption of a commodity goes on declining with each additional unit of the commodity.

So, the marginal utility from the first unit will be highest, that from second unit will be lesser, that from third even lower and so on.

In the examples given above, Wesly's case is most applicable to this.

So, option C is the correct answer.

4 0
3 years ago
According to the Business Case for CSR, a reason companies are becoming more socially responsible is all of the following except
denis-greek [22]

Answer:

d. Access to capital

Explanation:

Corporate social responsibility (CSR) is characterized as a program of activities to lessen external costs. it is also an approach, practice, speculation and solid outcome sent and accomplished by a business organization in the quest for its partners' interest.

3 0
3 years ago
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