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kati45 [8]
3 years ago
5

We only want to consider incremental earnings in the capital budgeting process. incremental earnings are the

Business
1 answer:
Soloha48 [4]3 years ago
5 0

Incremental earnings are the acquisition of a business line, asset or initiation of a project. It is the quantity by which a company expects its earnings to transform as a value of an investment decision and is equal to sum of incremental income minus incremental cost and depreciation.

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Differential Analysis for Further Processing
ArbitrLikvidat [17]

Answer:

Dominican Sugar Company

1. Differential Analysis as of March 24:

                                          Raw Sugar       Refined Sugar

                                        Alternative 1       Alternative 2       Difference

Sales volume                        42,000            33,600

Selling price per pound          $1.40              $2.20

Sales revenue                   $58,800          $73,920                 $15,120

Materials requirement      100,000            42,000

Output from process         42,000            33,600

Unit cost                               $0.35              

Cost of materials            $35,000          $35,000

Cost of further refining                           $21,000

Total costs                      $35,000          $56,000                ($21,000)

Net income                     $23,800           $17,920                  ($5,880)

2. Based on cost implications, Dominican Sugar should not refine the raw sugar further.  Further refining will cause the company $5,880 in lost income.  This means that it costs more to refine the raw sugar.

Explanation:

a) Data and Calculations:

                                          Raw Sugar       Refined Sugar

                                        Alternative 1       Alternative 2

Sales volume                        42,000            33,600 (42,000/1.25)

Selling price per pound          $1.40              $2.20

Sales revenue                   $58,800          $73,920

Materials requirement      100,000            42,000

Output from process         42,000            33,600 (42,000/1.25)

Unit cost                               $0.35              

Cost of materials            $35,000          $35,000

Cost of further refining                           $21,000 (42,000 * $0.50)

Total costs                      $35,000          $56,000

Net income                     $23,800           $17,920

6 0
3 years ago
Discuss the difference between organizational objectives and strategies.
densk [106]
Objectives are like goals that you want to accomplish, strategies are the methods to get there
3 0
3 years ago
Asking that all sources of income be revealed on a credit application is prohibited by the ecoa.
andreev551 [17]
That is true. Good luck on your future endeavors. 
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3 years ago
An attractive business climate is defined by only one dimension: it minimizes the political risk to a company.
kari74 [83]
I believe the correct answer is false. <span>An attractive business climate is not defined by only one dimension: it minimizes the political risk to a company. Other than this, there are other indicators present. Hope this answers the question. Have a nice day.</span>
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3 years ago
Which of the following would not be reported as current liabilities on the balance sheet?
olga55 [171]
D. Accounts receivable
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2 years ago
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