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Salsk061 [2.6K]
2 years ago
9

Product V72 sells for $20 per unit as is, but if enhanced it can be sold for $25 per unit. The enhancement process will cost $52

,000 for 12,000 units. If the 12,000 units of Product V72 are sold as is without further processing, the company:
Business
1 answer:
Furkat [3]2 years ago
3 0

Answer:

It will incur an Opportunity cost of $8,000.

Explanation:

It will incur the opportunity cost of $8000 because the additional unit produces by the company then the additional revenue that is generated will be equal to the amount (25 - 20) x 12,000 = 60,000. Since the additional cost, that incurs for the production of 12000 units is 52000. Therefore the profit earned is $8000.

So if the company does not produce it then it will lose the profit of $8000.

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What is the capitalism
dybincka [34]

Answer:

Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, a price system, private property and the recognition of property rights, voluntary exchange and wage labor.

Explanation:

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2 years ago
Ford Motor Corporation is considering purchasing new technology that will increase productivity by twenty percent. If Ford Motor
Alborosie

Answer:

E. The demand for loanable funds increases.

5 0
3 years ago
On June 1, 2018, Blue Co. distributed to its common stockholders 180,000 outstanding common shares of its investment in Red, Inc
faltersainse [42]

Answer:

Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.

Explanation:

Book value per share of Red Inc = $1.20 per share

As the value of share is revised just after the declaration but before distribution there will be gain on sale of investment.

Net gain = Sale price - Book value

= $3.40 - $1.20 per share = $2.2 per share

Total gain for the year end on June 30 will be

= $2.2 per share X 180,000 shares = $396,000 shares

Thus Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.

8 0
2 years ago
During June, Buttrey Corporation incurred $72,000 of direct labor costs and $12,000 of indirect labor costs. The journal entry t
romanna [79]

The correct question is:

During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

A)debit to Work in Process of $67,000B)credit to Work in Process of $74,000C)debit to Work in Process of $74,000D)credit to Work in Process of $67,

Answer:

a. debit to Work in Process of $67,000

Explanation:

Labour costs are made up of direct labour cost and indirect labour costs.

An addition of these two items results in amount of money the company will pay as wages to worked (labour).

In the given scenario we will then add direct and indirect labour cost to get wages to be paid.

Wage = 72,000 + 12,000 = $84,000

Wages is credited when raising journal entry

Direct labour will be classified under work in process (that is $72,000)

While indirect labour is manufacturing overhead $12,000)

Work in process and manufacturing overhead are debited when raising journal entry

So one of the entries will be a debit to Work in Process of $67,000

7 0
2 years ago
After 8 years of working for a company that installed underground sprinkling systems for golf courses, Trevor was ready to ventu
BARSIC [14]

Answer:

B. two strengths and one threat

Explanation:

SWOT is an acronym that stands for strengths, weaknesses, opportunities and threats.

SWOT analysis helps an organization assess it's competitive position and devise strategies accordingly. Such an analysis aids an enterprise in decision making and planning.

In the given case, availability of finance/capital conveys strength and so does availability of skilled installers.

The construction activity being at an all time low with residential properties being foreclosed depicts a threat.

Thus, the given scenario represents two strengths and one threat.

3 0
3 years ago
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