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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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never [62]

It is important to review the credit card disclosure for information on APRs, Penalties, Grace periods, Minimum financing charges, Calculation methodologies, and Fees.

An explanation of all the fees, charges, interest rates, and conditions that a consumer can encounter when using the credit card is contained in a credit card disclosure. The legislation requires disclosure of this information by organizations that provide credit cards. The disclosures on credit cards offer clear information about costs and charges. They also encourage rivalry. To allow consumers to evaluate credit cards more effectively, it is legally necessary of all credit card companies to give the same price information. They can pick the one that better serves their tastes in terms of price.

The interest rate that a client will pay on outstanding balances is the most obvious example of a cost listed on a credit card disclosure. Basic elements like the monthly payment deadlines will also be covered in the disclosure.

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8 0
1 year ago
Lakeland, Inc. has 25,000 shares of 6%, $100 par value, noncumulative preferred stock and 50,000 shares of $1 par value common s
Maru [420]

Answer:

The common stockholders will receive a dividend of $100000 in 2015

Explanation:

The preferred stock is non cumulative which means that in case it does not pay dividends in a certain year, the dividends will no be accumulated and the company will not be obliged to pay these dividends in later year.

The per share preferred stock dividend for the company is = 100 * 0.06 = $6

The total dividends on preferred stock per year = 6 * 25000 = $150000

The common stockholders are paid dividends after the preferred stockholders are paid.

Thus, for 2015 the common stockholders will receive a dividend of,

Common stock dividend = 250000 - 150000 = $100000

8 0
3 years ago
International trade a. raises the standard of living for importing countries and lowers it for exporting countries. b. raises th
adoni [48]
<h3>International trade raises the standard of living in all trading countries. </h3>

Explanation:

International trade is an inter country exchange of goods and services. Globally, exporting offers people and countries the ability to be exposed to goods and services that are not available in their nations, or that would cost more domestically.

Global trade allows countries to make more effective use of their resources–whether labor, technology or money. International trade usually enables countries to concentrate on those markets in which they can be most competitive and effective. In this way, international trade generally raises the standard of living of both producers and consumers.

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3 years ago
The Value of a Bond is tied to the Dividend rate.<br><br> True or false
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<u>Answer:</u> False. The Value of a Bond is not related to the Dividend rate.

<u>Explanation:</u>

Bond rates are inversely related with the interest rates in the market and not dividend rates. Bonds yield interest for the investment and not dividends. Dividends are paid for shares. Dividend rates affects the share price and not Bond value in the market.

The interest rates of the Bonds can be fixed rates or fluctuating rates. It depends on the type of the security issued. As the interest rates are fluctuating then the risk for the investors increase.

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The Cook Corporation has two divisions--East and West. The divisions have the following revenues and expenses:
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