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Papessa [141]
4 years ago
10

It costs Glenwood, Inc. $82 per unit to manufacture 1,000 units per month of a product that it can sell for $122 each. Alternati

vely, Glenwood could process the units further into a more complex product, which would cost an additional $36 per unit. Glenwood could sell the more complex product for $162 each. How would processing the product further affect Glenwood's profit?
Business
1 answer:
mixas84 [53]4 years ago
5 0
<h2>Answer:</h2><h2>The profit would increase by $ 4000 if complex product was produced.</h2>

Explanation:

Total number of units to be manufactured = 1000

(i) The cost price of 1 unit = $ 82

The cost price of 1000 units = 82 * 1000 = $ 82000

Selling price of 1 unit = $ 122

The selling price of 1000 units = 122 * 1000 = $ 122000

Profit earned = 122000 - 82000 = $ 40000

(ii)To produce a complex product,

The cost price of 1 unit = $ 82 + $ 36 = $ 118

The cost price of 1000 units = 118 * 1000 = $ 118000

Selling price of 1 unit = $ 162

The selling price of 1000 units = 162 * 1000 = $ 162000

Profiy earned = 162000 - 118000 = $ 44000

Therefore, the profit would increase by $ 4000 if complex product was produced.

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West Corp. issued 15-year bonds two years ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If these bond
MaRussiya [10]

Answer:

7.44 %

Explanation:

The Yield to Maturity (YTM) is the Interest rate that makes the Present Value of Coupons and Principle equal the Market Price or Current Price of the Bond.

The Yield to Maturity can be calculated using a financial calculator as follows :

PV = - $100

N = (15 -2) × 2 = 26

PMT = ($100 ×  7.30%) ÷ 2 = $3.65

FV = $103

P/YR = 2

YTM = ?

Therefore, Inputting the values in the calculator as shown gives the Yield to Maturity is 7.44 %.

7 0
3 years ago
Lucy Sportswear manufactures a specialty line of T-shirts using a job-order cost system. During March, the following costs were
alukav5142 [94]

Answer:

Unit cost= $5,5unit

Explanation:

Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.

Generally accepted accounting principles require that the cost of goods sold shall consist of:

the cost of direct materials

the cost of direct labor

the cost of manufacturing overhead

Expenses that are outside of the manufacturing facilities, such as selling, general and administrative expenses, are not product costs. They are reported as expenses on the income statement in the accounting period in which they occur.

<u>In this exercise:</u>

Cost of goods manufactured:

Direct materials= $13700

Direct Labor=$4800

Factory overhead= 800hours*$25=$20000

Total= $38500

Unit cost= 38500/7000=$5,5unit

8 0
4 years ago
On June 2nd, SEAkayak had the following details for its common stock: 1,000,000 shares authorized, 400,000 shares issued, and 40
kompoz [17]

Answer:

The authorized common stock shares remain 1,000,000 shares.

Explanation:

The authorized shares are not affected by movements in the shares, like issue of shares, repurchase, and resale of treasury stock shares.  The authorized shares, therefore, represent the number of shares that the company is legally bound to issue without exceeding.  The implication is that the company is free to issue shares less than or equal to the authorized shares, but it may not issue more than the authorized until it obtains a new authorization.

The movements are accounted for in separate accounts called Issued Common Stock Account and Treasury Stock Account.  The treasury stock account is a contra account to the Common Stock.

3 0
3 years ago
One reason you should drive slowly around farm vehicles is:
murzikaleks [220]
Typical farm vehicles go slower and are expensive so you must drive slowly to make sure you don't run into it as Well as be polite
5 0
3 years ago
Read 2 more answers
Preferred stock is a hybrid—a cross between a common stock and a bond—in the sense that it pays dividends that normally increase
shtirl [24]

Answer:

The correct answer is B. False.

Explanation:

Preferred shares are called because they have priority over common shares in the payment of dividends or upon settlement, although they are subordinated to the payment of bonds or obligations. Their conditions are negotiated directly between the issuing entity -bank- and the investor or shareholder. They are a high financial risk asset that can give high bank interest or large losses.

3 0
3 years ago
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