Answer:
I would say the answer is B
Answer:
c. factory overhead.
Explanation:
Selling and administrative expenses can be defined as the operating expenses which comprises of all the costs incurred in the smooth running of a business.
Selling and administrative expenses include all of the following shipping document preparation, post-sale technical support, and customer return processing except factory overhead.
A factory overhead can be defined as the amount of money incurred by a company or business entity in the course of its manufacturing process.
This ultimately implies that, factory overhead refers to cost incurred in the manufacturing process of finished goods and cannot be linked directly to the goods.
The factory overhead costs include costs such as indirect labor, rent, depreciation, utility bills, property taxes etc.
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Answer:
$24,220
Explanation:
After tax cashflow formula as follows;
AT cashflow = Income before taxes(1- tax) + annual depreciation amount
Depreciation amount is added back because even though it is an expense deducted to arrive at the income before tax, it is not an actual cash outflow.
Annual depreciation amount = $200,000/ 20 = $10,000
AT cashflow = 18,000*(1-0.21) + 10,000
= 14,220 + 10,000
= 24,220
Therefore, Mariposa’s expected cash flow after taxes per year is $24,220
Answer:
The company should not further process the product as it results in income reduction by $1000.
Explanation:
According to the given data, company current profit for 1000 units is :
= (cost of sell) - (cost of manufacturing)
= $7000 - $5000
= $2000 (current profit)
While when company further process the product, the profit will be :
= (cost of sell) - (cost of manufacture)
= $10000 - ( $5000 + $4000)
= $10000 - $9000
= $1000
It clearly shows that further processing the product may result in reduction of profit by $1000.
Hence the company should not further process the product.
