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timama [110]
3 years ago
15

1. The Cozy Company manufactures slippers and sells them at $ 10 a pair. Variable manufacturing cost is $ 5.75 a​ pair, and allo

cated fixed manufacturing cost is $ 1.75 a pair. It has enough idle capacity available to accept a​ one-time-only special order of 25,000 pairs of slippers at $ 7.50 a pair. Cozy will not incur any marketing costs as a result of the special order.
What would the effect on operating income be if the special order could be accepted without affecting normal​ sales:

(a)​ $0,
(b) $ 43,750 ​increase,
(c) $ 143,750 ​increase, or​
(d) $ 187,500 ​increase?

Show your calculations.
Business
1 answer:
nadya68 [22]3 years ago
6 0

Answer:

(b) $ 43,750 ​increase

Explanation:

The computation of the effect on operating income is shown below:

= Contribution margin per unit × special order

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $7.50 - $5.75

= $1.75

And, the special order is of 25,000 pairs

Now put these values to the above formula  

So, the value would equal to

= $1.75 × 25,000 pairs

= $43,750

The fixed cost would remain unchanged.

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Answer:

D. The threat of takeovers tends to reduce potential conflicts between stockholders and managers.

Explanation:

As with the threat of takeover, there comes the risk of losing control, power, monetary benefits, the stockholder's tend to agree with managers, and the manager's tend to agree with stockholders.

As both aims for no takeover of the company, both work in for each other, agreeing to the suggestions placed.

There is no dis-regard to any of the suggestions paid by any of the party. This threat actually creates moral harmony and unity among stakeholders and management.

Therefore, correct answer is:

D. The threat of takeovers tends to reduce potential conflicts between stockholders and managers.

8 0
3 years ago
You have just applied for a 30year 100000 mortgage at a rate of 10%.what must be annual payment be?​
Fittoniya [83]

Answer:

The correct answer is "$10,607.92".

Explanation:

Given:

Amount borrowed,

P = 100000

Interest rate,

r = 10%

or,

 = 0.1

Time,

= 30 years

Now,

The annual payment will be:

⇒ A=P\times \frac{r(1+r)^n}{(1+r)^n-1}

       =100000\times \frac{0.1(1+0.1)^{30}}{(1+0.1)^{30}-1}

       =10,607.92 ($)

7 0
3 years ago
In the case discussed, the Supreme Court held that the trademark for Coca-Cola was valid and banned another company from using a
lakkis [162]

Answer:

The Supreme Court ruled that the name Coke was so well known around the world, that it is effectively a common term for the trademarked Coca Cola. If other companies try to use similar terms like Koke for other types of products, e.g. bakery items, there is a risk that the Coca Cola company would be negatively affected by that product's image since consumers might associate Koke directly to Coca Cola.

It doesn't matter if the products were low quality or not, the courts cannot determine that, what matters is that the use of the term may negatively impact another company.

7 0
3 years ago
Most organizations spend more time and money on the systems ________ phase than on any of the other phases. Group of answer choi
mariarad [96]

Answer:

maintenance phase

Explanation:

Maintenance phase -

It refers to the phase of making the changes in the software , hardware and documentation to improve the operations effectively , is referred to as the maintenance phase .

The phase is important , as it enhances the efficiency and corrects the problem .

The company or the organisation tries to invest the maximum amount in the maintenance phase .

Hence , from the given statement of the question,

The correct option is maintenance phase .

6 0
3 years ago
A company purchased $2,300 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $450 worth of merchandise. On
Aleksandr [31]

Answer:

Dr Accounts payable 1850

Cr Merchandise inventory $37

Cr Cash $1813

Explanation:

Preparation of the journal entry to record the payment on July 12 Using the gross method,

JOURNAL ENTRY

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Dr Accounts payable ($2300-450) 1850

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Cr Cash $1813

($1850-$37)

(Being entry recorded for payment to supplier)

7 0
3 years ago
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