Answer:
a) Contribution from the special order= $52,640.
b) Stuart should accept the order
Explanation:
The amount of contribution to profit from the special order is the difference between the revenue and the relevant cost of variable cost of the special order.
The relevant cost of the special order is equal the sum of all variable cost only.
Note that the allocated facility overhead is irrelevant to whether to accept or reject the order. This is so because the costs would still be incurred either way.
Relevant variable costs of special order = (880 + 510) × 47 = $65,330
Sales revenue = 2,510 × 47 = $117,970.00
Contribution from the special order =$117,970.00 - $65,330
= $52,640.00
B) Stuart should accept the special order because it would increase its profit by $52,640.
Answer:
Explanation:
The necessary adjusting entries at December 31 to record amortization required by the events above has been prepared.
It should also be noted that due to the goodwill having an indefinite life, no entry was made to amortize the goodwill.
It should be noted that the amortization expense was gotten as:
Annual amortization = $75,000/5
= $15,000
2015 amortization= $15,000 × 8/12months
= $15,000 × 2/3
= $30,000/3
= $10,000
Kindly check the attached file forthe adjusting entries
Answer:
The correct answer is D. externalities.
Explanation:
An externality is defined as that situation or group of situations that determine that a service good is not reflected at its real market price. In this example, the computer industry is so close that they do not know for sure the benefits they have when offering their goods, and it becomes an advantage in the sense that due to its close location it is possible to establish agreements to manage prices and not enter into direct market competition.
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Answer:
A transaction that involves the investment of cash in a business is debited because
1) For a business to invest cash for their expansion, involves the reduction of finances in the available revenue or profit for the purchase of equipment, property and software for internal use, for which money has to be drawn, which is a form of b=debit
2) For an owner investing money into his business, is taken as an increase in the amount the business owes the owner, which is equivalent to amount owed the owner which has to be recorded as a debit for financial accounting
Explanation:
