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Nostrana [21]
3 years ago
10

CompuTronics, a manufacturer of computer peripherals, has excess capacity. The company's Utah plant has the following per-unit c

ost structure for item no. 89:
Variable manufacturing $ 60
Fixed manufacturing 25
Variable selling 8
Fixed selling 11
Traceable fixed administrative 4
Allocated administrative 2

The traceable fixed administrative cost was incurred at the Utah plant; in contrast, the allocated administrative cost represents a "fair share" of CompuTronics' corporate overhead. Utah has been presented with a special order of 5,600 units of item no. 89 on which no selling cost will be incurred. The proper relevant cost in deciding whether to accept this special order would be:

a. $60.
b. $89.
c. $91.
d. $110.
e. None of these.
Business
1 answer:
zavuch27 [327]3 years ago
3 0

Answer:

a. $60.

Explanation:

While computing the relevant cost in case of special order only the variable manufacturing cost is to be considered as it will be changed in special order case.

And the other cot like - fixed manufacturing, variable & fixed selling, traceable fixed administrative cost, etc are not relevant as it remains constant

These costs are not useful for decision making. Hence, it is to be ignored

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Roadside Markets has 8.45 percent coupon bonds outstanding that mature in 10.5 years. The bonds pay interest semiannually. What
Anarel [89]

Answer:

Total $1,091.0030

Explanation:

The market value of the bond will be the sum of the present value of the cuopon payment and the maturity date:

present alue of cuopon payment will be calculate as present value of an ordinary annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 42.25   (1,000 face value x 8.45% /2 payment per year)

time 21 (10 years at 2 payment per year+ 1 payment)

rate 0.036   (here we use the YTM rate /2 because there are 2 payment per year)

42.25 \times \frac{1-(1+0.036)^{-21} }{0.036} = PV\\

PV $615.1803

<u>Then, for the present value at maturity, we calculate the present value of a lump sum</u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   21.00

rate  0.036

\frac{1000}{(1 + 0.036)^{21} } = PV  

PV   475.82

<u>Finally, we add them both together</u>

PV c $615.1803

PV m  $475.8227

Total $1,091.0030

8 0
3 years ago
Lacuna Inc. factors $12,000,000 of its accounts receivables with recourse for a finance charge of 3%. The finance company retain
Elena L [17]

Answer:

The loss on transfer of receivables is $960,000

Explanation:

Sales amount                                       $12,000,000

Finance charge 3%*$12 million              ($360,000)

Retention amount 10%*$12 million           ($1,200,000)

Cash upfront                                           $ 10,440,000

The recourse liability is $600,000,which means that additional liability of $600,000 would be incurred by Lacuna Inc, if the total amount from the receivables is not received owing to the fact that the factoring is with recourse.

The loss on transfer of receivables is shown as:

Finance charge                    $360,000

Recourse liability                  $600,000

total loss                                 $960,000

5 0
3 years ago
Cagney and Lacey enter into a written contract to open "Tried and True," a store specializing in used guns recovered from murder
emmasim [6.3K]

Answer:

3. No, due to unilateral mistake

Explanation:

Lacey and Cagney both had agreed to wok for 30 hours per week and the agreement is in written format since it is enforceable. Both of them are sharing 50% profits so both will have to share the duties equally. When Lacey makes an excuse and is working for 20 hours per week only Cagney can sues her and she is in a probability to win against her. Lacey should have informed Cagney about the vacation from school scenario before signing the contract.

6 0
3 years ago
Cant take big d but i suck on it....
Scrat [10]
.. huh and orange then me too and brown and green faking a red green brown
6 0
2 years ago
Read 2 more answers
It is theorized that the price per share of a stock is inversely proportional to the prime​ (interest) rate. In January​ 2010, t
Zanzabum

Answer:

price per share in March is $96

Explanation:

given data

January price per share = ​$193.04

January prime rate = 2.75%

march prime rate = 5.50​%

to find out

What was the price per share in March

solution

we know that here price is proportional to prime rate

Price ∝ \frac{1}{rate}   ........1

so price = k ×  \frac{1}{rate}      ...............2

k is constant here

so put all value for january

193.04 = k ×  \frac{1}{2.74%}

k = 5.28

so for  march price per share will be by equation 2

price = 5.28 ×  \frac{1}{5.50%}

price = 96

so  price per share in March is $96

3 0
3 years ago
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