Answer:
Burns Industries
Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least:
above $38 (the variable cost per unit).
Explanation:
a) Data and Calculations:
Monthly production and sales units = 18,000
Production capacity per month = 33,000 units
Costs at the 18,000-unit-per-month level of production:
Variable costs = $38
Fixed costs = 23
Total per unit = $61
Selling price per unit = $78
Special offer for 4,800 saws per month, without changing the fixed manufacturing costs.
b) Incremental analysis approach is a management decision technique that specifies that only relevant, marginal, or differential costs should be taken into account. It rules out the inclusion of sunk or fixed costs, which do not change between alternatives.
Answer:
d. $487,750
Explanation:
Cost of goods manufactured
<em>Consider only the manufacturing costs</em>
Cost of goods manufactured = $145,000 + $200,000 + $ 170,000 + ($5.75 x 25,000) - $171,000
= $487,750
Note : Only overheads applied $143,750 ($5.75 x 25,000) are added to cost of goods manufactured instead of actual overheads.
Conclusion
the amount of cost of goods manufactured is $487,750
Answer:
duress
Explanation:
A contract may not be enforced it any of the parties does not give genuine or real assent, i.e. they freely agree with the contract terms.
Duress happens when one of the parties threatens to do something bad or wrong to the other party in order to force them to enter a contract. Contracts agreed under duress can be invalidated.
Answer:
D : $88,800
Explanation:
<u>Cost of goods manufactured :</u>
Direct Material used in production $
21,300
Indirect Material used in production $ 3,700
Direct Labour $
34,100
Direct Labour $ 5,900
Manufacturing overhead <u> $ 16,600 </u>
Total Manufacturing cost $ 75100
Add:Beginning Work in process inventory $7,200
Less: Ending Work in process inventory <u>$ 0 </u>
Cost of Goods Manufactured <u>$88,800</u>
Answer:
The firm's cost of equity is C. 14.05 percent
Explanation:
Hi, we need to use the following formula in order to find the cost of equity of this firm.
Where:
r(e) = Cost of equity
rf = risk free rate
rm = Market rate of return
Everything should look like this.
So, this firm´s cost of equity is 14.05%
Best of luck
