1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stich3 [128]
3 years ago
13

Boone Products had the following unit costs:Direct materials $24Direct labor 10Variable overhead 8Fixed factory (allocated) 18A

one-time customer has offered to buy 2,000 units at a special price of $48 per unit. Because of capacity constraints, 1,000 units will need to be produced during overtime. Overtime premium is $8 per unit. How much additional profit or loss will be generated by accepting the special order?a. $30,000 lossb. $4,000 profitc. $24,000 lossd. $4,000 loss
Business
1 answer:
Maslowich3 years ago
4 0

Answer: Option (b) is correct.

Explanation:

Given that,

Direct materials = $24

Direct labor = $10

Variable overhead = $8

Fixed factory (allocated) = $18

Overtime premium = $8 per unit

Purchased = 2,000 units at a special price of $48 per unit

Contribution Margin (2000 - 1000 units) = special price per unit - Direct materials - Direct labor - Variable overhead

= 48 - 24 - 10 - 8

= $6 per unit

Contribution margin for units produced during overtime = special price per unit - Direct materials - Direct labor - Variable overhead - Overtime premium

= 48 - 24 - 10 - 8 - 7

= $(-1) per unit

Total contribution = 1000 × 6 + 1000 × -1

= $6000 - $1000

= $4000 Profit

Therefore, additional profit will be generated by accepting the special order is $4000.

You might be interested in
In the context of web marketing the _____ is computed by dividing the number of clicks on an ad
sesenic [268]
The answer would be “click through rate.”
4 0
2 years ago
If ending accounts receivable exceeds the beginning accounts receivable Group of answer choices cash collections during the peri
sukhopar [10]

Answer:

no cash was collected during the period

or

cash collections during the year are less than the amount of revenue recognized

Explanation:

For example if we had Accounts receivable beginning balance $ 250,000 and Sales of $ 500,000 are made on accounts then the Total  Accounts receivable will be $ 750,000.

But out of the $ 500,000 sales only $300,00 cash is collected and the remaining  $ 200,000 is still in the Accounts receivable balance so the ending Accounts receivable balance will be $ 250,000 + $200,000 = $ 450,000 which will be greater than beginning Accounts receivable balance.

So there are two possibilities either  cash collections during the year are less than the amount of revenue recognized.

or

no cash was collected during the period.

Similarly it cannot be choice no 1 : collections during the period exceed the amount of revenue recognized

Because if more cash is collected then ending account receivable balance would be less than the beginning account receivable balance.

Choice no 3 is also wrong if cash collections are more than the ending accounts  receivable balance would be less

4 0
3 years ago
offers a 6.3 percent bond with a current market price of $767.50. The yield to maturity is 8.49 percent. The face value is $1,00
musickatia [10]

Answer:

9.25 years

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:

According to given data

Assuming the Face value of the bond is $1,000

Coupon payment = C = $1,000 x 6.3 = $63 annually = $31.5 semiannually

Current Yield = r = 8.49% / 2  = 4.245% semiannually

Market value = $767.50

Market Value of the Bond = $31.5 x [ ( 1 - ( 1 + 4.425% )^-n ) / 4.425% ] + [ $1,000 / ( 1 + 4.425% )^n ]

Market Value of the Bond = $31.5 x [ ( 1 - ( 1 + 4.425% )^-n ) / 4.425% ] + [ $1,000 / ( 1 + 4.425% )^n ]

n = 18.53 / 2

n = 9.25 years

7 0
3 years ago
Read 2 more answers
Company A, a British manufacturer, wishes to borrow US dollars at a fixed rate of interest. Company B, a US multinational, wishe
Sever21 [200]

Answer:

Company b 11.0 % 7.o%

Explanation:

Is this ok

7 0
2 years ago
Sound your horn __________________. A. to have fun B. to demand the right-of-way C. when necessary to avoid collisions D. to giv
alex41 [277]
A. Sounding your horn to have fun is just absurd, and could cause an issue. Either leading to other drivers to have a scare and wonder what was the problem, or they would get angry because they'd think you're trying to be rude. So, answer A. is incorrect. 

B. Sound your horn to demand the right-of-way is extremely wrong, and incorrect. So, answer B. is incorrect. 

C. You must sound your horn when necessary in order to avoid any collisions. You must do this to help warn and prevent another driver from getting into an accident with you. Therefore, C is correct.

D. Sound your horn to give other driver a piece of your mind. This is also known as road rage, it's not worth doing since you could get distracted while driving, and could lead to serious (sometimes fatal) issues. So, answer D. is incorrect. 

So, as I said above, the correct answer is: C. W<span>hen necessary to avoid collisions 

Good luck with your studies, and I truly hope this helps!~</span>
8 0
3 years ago
Read 2 more answers
Other questions:
  • Mickey built his lemonade stand out of $75,000 worth of plywood and paint. He uses $2.25 of lemons, sugar and water to make his
    13·1 answer
  • What is the consistent finding regarding age identity of 60- to 75-year-olds?
    11·1 answer
  • What is an emotional motive?
    8·1 answer
  • Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions of dollars): N
    5·1 answer
  • In 2013, total revenues from digital sales of regional (Mexican/Tejano), pop/rock, and tropical (salsa/merengue/cumbia/bachata)
    15·2 answers
  • The total factory overhead for Martin Company is budgeted for the year at $375,000. Martin manufactures two garden products: a l
    10·1 answer
  • Toby’s current marginal utility from consuming peanuts is 100 utils per ounce and his marginal utility from consuming cashews is
    5·2 answers
  • Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay divi
    12·1 answer
  • Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams from the previous question. The initial marg
    10·1 answer
  • Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components depart
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!