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Fittoniya [83]
3 years ago
6

Excellent Manufacturers Inc. has a current production level of​ 20,000 units per month. Unit costs at this level​ are: Direct ma

terials ​$0.26 Direct labor 0.40 Variable overhead 0.16 Fixed overhead 0.21 Marketing − fixed 0.25 ​Marketing/distribution − variable 0.42 Current monthly sales are​ 18,000 units. Jax Company has contacted Excellent about purchasing​ 1,550 units at​ $2.00 each. Current sales would NOT be affected by the one−time−only special​ order, and variable​ marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff​ Company's change in operating profits if the special order is​ accepted?
Business
1 answer:
Marina CMI [18]3 years ago
6 0

Answer:

The increase in operating profit is $1,829.00.

Explanation:

The rise or fall in the operating income:

= Purchase unit × ( offer price- direct material- direct labor- variable overhead)

The rise or fall in the operating income: = 1550× (2 - 0.26 - 0.4 - 0.16)

The rise or fall in the operating income: = $1829

Therefore the profit will increase by $1829

Here all the fixed cost is not considered because it is a sunk cost and variable and administrative expenses are also not considered because these costs are not going to be incurred for offer.

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Explain hotel manager​
Ksenya-84 [330]

Answer:

Hotel managers are responsible for managing employees and for planning, marketing , coordinating and administering hotel services such as catering and accommodation facilities.

4 0
3 years ago
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Hector would like to buy a new pair of soccer cleats. Hector prefers Adidas to Puma brand soccer cleats. But Hector chooses to b
oksano4ka [1.4K]

Answer: Option (A) is correct.

Explanation:

It was given that consumer prefers Adidas to puma brand soccer cleats but he buys puma brand soccer cleats. This is only because of the price theory and rational consumer choice. We know that a rational consumer will choose a product with a lower price. Both puma and Adidas brand soccer cleats are substitutes, thus, if the price of puma cleats is lower than the Adidas cleats then he should prefer puma brand soccer cleats.

3 0
3 years ago
Sale price $60 $100 Variable costs $35 $60 Machine hours required for 1 vase 1 2 Total fixed costs are $600,000, and Rose Incorp
MrRissso [65]

Answer:

a) CM1 = 25

CM2 = 40

b) CMmh1 = 25

CMmh2 = 20

c) 25,000 units of Vase 1 and 12,500 units of Vase 2

d) OI = $ 525,000

Explanation:

a. Determine the contribution margin per unit for each type of vase.

The contribution margin per unit is equal to the difference between the sale price and the variable cost per unit:

CM_1=P_1-VC_1=60-35=25\\\\\\CM_2=P_2-VC_2=100-60=40

b. Determine the contribution margin per machine hour for each type of vase.

For the Vase 1, the number of machine hours per unit is 1. So the contribution margin per machine hour for Vase 1 is equal to CM1=$25.

For the Vase 2, the number of machine hours per unit is 2. Then, the contribution margin per machine hour for Vase 2 is equal to CM2=$40/2=$20.

c. Determine the number of units of each style of vase that Rose Incorporated should produce to maximize operating income.

There are 3 restrictions:

- Max 25,000 units of Vase 1

- Max 25,000 units of Vase 2

- 50,000 hours of machine hour

As the contribution margin per machine hour is higher for the Vase 1, so we start producing the more we can of Vase 1. The limit is 25,000 units.

Then, we are left with 25,000 machine hours available for Vase 2. We can produce 25,000/2=12,500 units, which is under the market constraint.

d. What is the dollar amount of the maximum operating income as calculated in C above

The operating income for the mix proposed in C is:

OI=CM_1*q_1+CM_2*q_2-FC\\\\OI=25*25,000+40*12,500-600,000\\\\OI=625,000+500,000-600,000\\\\OI=525,000

4 0
3 years ago
Ivanhoe Company sublet a portion of its warehouse for five years at an annual rental of $71100, beginning on May 1, 2020. The te
Olenka [21]

Answer and Explanation:

The adjustment should be as follows

Unearned Rent Revenue    $47,400

    To Rent Revenue   $47,400

(Being recording of revenue earned is recorded)

Here unearned rent revenue is debited as it decreased the liabilities and the rent revenue is credited as it increased the revenue. Also liabilities and revenue contains the normal debit balance

The working is shown below:

= $71,100 × 8 months ÷ 12 months

= $47,400

The eight months are calculated from May 1 to December 31

8 0
3 years ago
On January 1, 2022, The Eighties Shop has 100,000 shares of common stock outstanding. The Eighties Shop incurred the following t
Anastasy [175]

Answer:

Date        General Journal                Debit            Credit

March 1   Bank A/c                        $2,650,000

                  (53,000 × $50)

                       Share Capital A/c                            $53,000

                        (53,000 × $1)

                        Share Premium A/c                        $2,597,000

                        [53,000 × $49 ($50 - $1)}  

                (Being additional 53,000 issued shares for $50)

May 10     Treasury Stock A/c            $254,400

                (4,800 × $53)

                        Cash A/c (4,800 × $53)                  $254,400

               (Being purchase of 4,800 treasury stock for $53 )    

June 1       Retained Earning A/c        $207,480  

                 (1,53,000- 4,800) × $1.4

                          Dividend Payable A/c                   $207,480

                           [(153,000 - 4,800) × $1.4]

                 (Being cash dividend declared)

July 1        Dividend Payable A/c       $207,480

                           Cash A/c                                        $207,480

                 (Being cash dividend paid)

October 21  Cash A/c (2,400 × $58)   $139,200

                          Treasury Stock (2,400 × $53)          $127,200

                          Paid in Capital from treasury Stock $12,000

                           (2400 × $5)

                    (Being 2,400 Treasury Stock sold for $58)

8 0
2 years ago
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