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e-lub [12.9K]
3 years ago
8

A customer has requested that Lewelling Corporation fill a special order for 9,000 units of product S47 for $20.50 a unit. While

the product would be modified slightly for the special order, product S47's normal unit product cost is $14.40: Direct materials $ 3.10 Direct labor 1.50 Variable manufacturing overhead 6.40 Fixed manufacturing overhead 3.40 Unit product cost $ 14.40 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $5.00 per unit and that would require an investment of $36,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:
Business
1 answer:
bonufazy [111]3 years ago
5 0

Answer:

$4,500

Explanation:

The computation of the annual financial advantage (disadvantage) for the company is shown below:

Sales (9,000 units × 20.50)    $184,500

Less: Variable costs:      

Direct materials (9,000 units × $3.10) -$27,900  

Direct labor (9,000 units × $1.50)         -$13,500

Variable manufacturing overhead (9,000 units × $6.40) $57,600

Increase in variable costs (9,000 units × $5) -$45,000

Less: Investment in special molds  -$36,000  

Financial advantage                                  $4,500

We simply deduct the all cost from the sales so that the financial advantage could come

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On December 31 of Swift Co.’s first year, $70,000 of accounts receivable is not yet collected. Swift estimates that $4,000 of it
pishuonlain [190]

Answer:

1. $66,000

2. $66,000

Explanation:

The computations are shown below:

1. Before written off:

= Account receivable balance - uncollectible amount

= $70,000 - $4,000

= $66,000

2. After written off:

= Account receivable balance - second year written off amount - uncollectible amount + second year written off amount

= $70,000 - $700 - $4,000 + $700

= $66,000

8 0
3 years ago
If your job at the company is to improve existing products, you are probably using the ________ strategy.
ryzh [129]

If your job at the company is to improve existing products, you are probably using the development strategy.

<h3>What is the development strategy?</h3>

This is the term that is used to do with the actions that would involve the research and the identification of the strategic options in the business. It has to help in such a way that it would provide the resources that would help in the achievement of objectives.

Hence we can say that If your job at the company is to improve existing products, you are probably using the development strategy.

Read more on development strategy here: brainly.com/question/27801561

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6 0
1 year ago
On what does consumer’s willingness to pay depends?
allochka39001 [22]

Answer:

It depends on a number of things. The quality of the product, the reviews of the product, or maybe just to feel cool.

6 0
3 years ago
The consumer price index was 200 in 2008 and 190 in 2009. The nominal interest rate during this period was 4.5 percent. What was
leva [86]

Answer:

the real interest rate is 9.5%

Explanation:

The computation of the real interest rate is shown below:

But before that inflation rate need to be determined

Inflation rate is

= [CPI this year - CPIlast year] ÷ CPI last year

= {(190 - 200) ÷ 200} ×  100

= -0.05 × 100

i = -5%

Now the real interest rate is

real interest rate = nominal interest rate - inflation rate

= 4.5% - (- 5%)

= 9.5%

Hence, the real interest rate is 9.5%

3 0
3 years ago
Classify each possible change listed according to whether it will make small farms more efficient or less efficient based on the
dybincka [34]

Full question:

Classify each possible change listed according to whether it will make small farms more efficient or less efficient based on the information in the Washington Post article Small vs. Large: Which Size Farm Is Better for the Planet:

Plant more disease-resistant crops, reduce the number of different crops planted, avoid planting genetically modified crops, rely more on organic rather than synthetic methods of farming,

Answer and Explanation:

Plant more disease-resistant crops is classified under more efficient and Less costly. The writer believes disease resistant crops increase efficiency as there is reduced occurrence of death of crops and consequent increased losses and costs

Reduce the number of different crops planted is classified under more efficient and less costly. The writer emphasizes specialization in farming whereby for example planting rice or corn should be done alone and not mixed with other crops as this would be less efficient and costly.

Avoid planting genetically modified crops is classified less efficient and more costly. The writer encourages planting genetically modified crops as genetically modified plants are geared towards increased plant product and yield from genetically optimized plants

Rely more on organic rather than synthetic methods of farming is classified less efficient and more costly. In the article, the writer believes chemically induced crops are bad for the environment and don't yield much in efficiency with time

7 0
3 years ago
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