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3 years ago

Identify all relevant costs or revenue that are applicable to the decisions stated below:

Business

1 answer:

lapo4ka [179]3 years ago

3 0

Answer:

Contribution margin of product.

Selling price of supplier.

Interference with other production.

Explanation:

The selling price offered less the contribution margin will determinate if the order generates a positive contribution for itself

If that number is negative the order should be rejected. if positive then, the analysis continues:

Interference with other production, if the company has to renounc e to selling in another marker for this order then; the differenctial revenue should be considered as it's an opportunity cost.

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4. Woodson Corporation provided the following information regarding its only product: Sale price per unit $65.00 Direct material

Montano1993 [528]

Answer:

B. Decrease by $2,800

Explanation:

Direct labor incurred $185,000 for 10,000 units, then it is $18.5 per unit

Direct materials used $160,000 for 10,000 units, then it is $16 per unit

Variable manufacturing overhead $120,000 for 10,000 units, then it is $12 per unit

Variable selling and administrative expenses $70,000 for 10,000 units, then it is $7 per unit

Additional revenue from accepting a special order is $72,000 = 1,200 units x sale price of $60

Additional fixed manufacturing overhead costs is $5,000

Additional variable cost $64,200 = 1,200 units x ($18.5+$16+$7+$12)

So net operating loss from special order is $2,800 = additional revenue of $72,000 – additional fixed cost of $5,000 - Additional variable cost of $64,000

6 0

3 years ago

Which model states that nations that are abundant in a factor will have a comparative advantage in a good whose production is in

Salsk061 [2.6K]

Answer:

The response options are:

a) specific factors model

b) technological gap model

c) product cycle model

d) real business cycle model

The correct answer is: c) product cycle model.

Explanation:

Product cycle is the progression of a product through the four stages of its time in the market. The four stages of the life cycle are: Introduction, Growth, Maturity and Decline. All products have a life cycle and the time at each stage varies from product to product.

By maintaining a strong fixation in the four stages of a product's life cycle, a business can maximize return and realize when it is the best time to shed a product. Bypassing this can cost the business its money and take them to a limited product life cycle.

3 0

3 years ago

Read 2 more answers

Do It! Review 9-1 Pharoah Company purchased a delivery truck. The total cash payment was $43,222, including the following items.

MrRa [10]

Answer:

$39,892

Explanation:

The computation of the cost of the truck is shown below:

= Negotiated purchase price of the delivery truck + Installation cost of special shelving + Painting and lettering cost + Sales tax

= $34,200 + $2,810 + $830 + $2,052

= $39,892

The motor vehicle license and the annual insurance policy is an annual cost expense which is not considered for computing the cost of the delivery truck. Hence, ignored it

3 0

3 years ago

5. A firm currently produces its desired level of output. Its marginal product of labor is 400, its marginal product of capital

gizmo_the_mogwai [7]

Answer:

Explanation:

Firms will hire more labor when the marginal revenue product of labor is greater than the wage rate, and stop hiring as soon as the two values are equal.

7 0

4 years ago

You take out a loan for $4000 at an annual interest rate of 5% (compounded annually). You must pay back the loan in 3 annual ins

GalinKa [24]

Answer: = $2,731.14

Explanation:

First find the annual payment.

The payment will be constant so is an annuity.

Present Value of an Annuity = Payment * Present Value Interest Factor of an annuity

4,000 = Payment * PVIFA( 3 periods, 5%)

4,000 = Payment * 2.7232

Payment = 4,000 / 2.7232

Payment = $1,468.86

This annual Payment is divided into an interest component and a component going towards principal repayment.

Interest component = 5% * 4,000

= $200

Amount going to principal = 1,468.86 - 200

= $1,268.86

Amount of Principal Outstanding = 4,000 - 1,268.86

= $2,731.14

3 0

3 years ago