Answer:
It is profitable to accept the special offer.
Explanation:
Giving the following information:
The shopping mall would like to purchase 200 extra-large white trees. Apex Company has the excess capacity to handle this special order. The shopping mall has offered to pay $120 for each tree.
Variable costs:
Direct materials $50.00
Direct labor (variable) $3.50
Variable manufacturing overhead $1.00
Additional variable cost= $6
This special order would require an investment of $10,000 for the molds required for the extra-large trees.
Because it is a special offer and there is unused capacity, we will not have into account the fixed costs (except the incremental fixed cost).
Unitary variable cost= 50 + 3.5 + 1 + 6= $60.5
Fixed costs= 10,000
Incremental income= (200*120) - (200*60.5) - 10,000= $1,900
It is profitable to accept the special offer.
Answer:
The correct answer is 7,020 units.
Explanation:
According to the scenario, the computation of the given data are as follows:
Fixed cost = $117,000
Selling price = $51
Variable cost = $26
Pretax income to earn = 50% of fixed cost
So, Pretax income = 50% × $117,000 = $58,500
So, we can calculate the units required by using following formula:
Units required = (Total fixed costs + Pretax income) ÷ (Selling price - variable cost)
= ($117,000 + $58,500) ÷ ( $51 - $26)
= 7,020 units.
1) Banks hold excess and secondary reserves toA) reduce the interest-rate risk problem.
2) Which of the following statements most accurately describes the task of bank asset management?
b. Banks seek to have the highest liquidity possible subject to earning a positive rate of return on their operations.
3) The goals of bank asset management include
d. purchasing securities with high returns and low risk.
Hope this helps. Have a nice day.
