Answer:
Profit from sale of special order of 4,000 units increase by $14000
Explanation:
given data
order = 4000 units
Sales = $ 190,000
Cost of Goods Sold = 45,000
Gross Margin = $45,000
Sales price per unit = $15
solution
as we know that Elkhorn has excess capacity
so sales of 4000 additional units would not affect current sales of 10,000 units
and by production of excess 4000 units fixed cost would not increase
so Variable cost per unit will be
Variable cost per unit = 
Variable cost per unit = $11.5
so
Profit per unit will be
Profit per unit = Sales price - Variable cost
Profit per unit = $15 - $11.5
Profit per unit = $3.5
so
Profit from sale of special order of 4,000 units increase as = 4000 × $3.5
Profit from sale of special order of 4,000 units increase by $14000
Answer:
B) Jeremy is facing a moral, legal, and ethical decision.
Explanation:
Jeremy knows that what he is doing is not legal, since the legal limit for exhaust system noise is 95 decibels and he will alter the cars muffler so that it reaches 125. Besides that, he faces moral and ethical dilemmas because his business is not doing well and his son has just been diagnosed with cancer and he needs money and a lot of it.
Answer:
$660,000
Explanation:
The computation of the equity investment is shown below:
= (Common stock balance) + (Earnings × purchased shares ÷ Total outstanding shares) - (dividend × purchased shares ÷ Total outstanding shares)
= ($600,000) + ($400,000 × 200 shares ÷ 1,000 shares) - ($1,00,000 × 200 shares ÷ 1,000 shares)
= $600,000 + $8,0000 - $20,000
=$660,000
Answer:
Cappuccino machines should be produced in Atlanta and coffee makers in Fort Worth. The Fort Worth facility would need to operate 100 hours per week and the Atlanta facility would need to operate 140 hours per week.
Total costs associated to operating the facilities = ($2,400 x 100) + ($600 x 140) = $324,000
Explanation:
Since there is not constraint regarding the total number of labor hours that each plant can operate, then we must choose the plant that operates at the lower cost. The only restriction is total time = 7 days x 24 hours = 168 hours per week:
production costs Atlanta:
coffee maker = $600 / 160 = $3.75 per unit
cappuccino machine = $600 / 200 = $3 per unit
production costs Fort Worth:
coffee maker = $2,400 / 800 = $3 per unit
cappuccino machine = $2,400 / 200 = $6 per unit
Cappuccino machines should be produced in Atlanta and coffee makers in Fort Worth. The Fort Worth facility would need to operate 100 hours per week and the Atlanta facility would need to operate 140 hours per week.
