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Ilia_Sergeevich [38]
3 years ago
6

Travers Company is contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units (

the total capacity of their factory). Travers Company is presently manufacturing 7000 units in their factory.
Direct Materials $5
Direct Labor $10
Variable Overhead $7
Fixed Overhead $6

Poppins Company wants to purchase 2,000 units at a special unit price of $36. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $6250 in order to stamp the company’s logo on the product. What is the amount of the incremental income (loss) from accepting the order? (your answer should be the total incremental profit or loss for ALL 2000 units, not just one unit)

If your answer is a loss, put a minus sign in front of your answer. Input your answer without dollar signs or commas. DON'T ROUND ANY NUMBER EXCEPT YOUR FINAL ANSWER
Business
1 answer:
garri49 [273]3 years ago
4 0

Answer:

Details                                               2,000 units (increase)

Sales(2,000*$36)                                                   $72,000

Direct material                                 $10,000  

Direct Labor                                     $20,000

Variable overhead                          $14,000

Stamping Machine                         $6,250

Total Cost                                                               $50,250

Incremental Profit                                                  $21,750

Explanation:

Fixed cost may vary per unit but in total cost it does not change,and fixed costs are irrelevant because they will be incurred at the same level even if the order is not accepted and if it is accepted in total fixed cost level it will not change it will just change per unit meaning no increase or decrease in fixed costs.

If company is operating less than its capacity and labor is paid for normal capacity then labor cost may not change unless it it paid for per unit or is operating at full capacity. In this case it is paid per unit.

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At what amount is a short-term notes receivable recorded on the issue date?
laiz [17]

Answer:

At face value

Explanation:

Short term notes are always recorded at face value, and that applies to both interest and non-interest bearing short term notes.

Non-interest bearing long term notes must be recorded at their discounted value, i.e. you must discount the long term note' face value by the discount rate used by the company.

6 0
2 years ago
Two companies share a market, in which they currently make $5,000,000 each. Both need to determine whether they should advertise
snow_tiger [21]

Answer: Please refer to Explanation.

Explanation:

Two Companies. We shall call them A and B.

If A and B decide not to advertise, they both get $5,000,000.

If A advertises and B does not then A captures $3 million from B at a cost of $2 million meaning their payoff would be,

= 5 million - 2 million + 3 million

= $6 million.

A will have $6 million and B will have $2 million as $3 million was captured from them. This scenario holds true if B is the one that advertises and A does not.

If both of them Advertise, they both reduce their gains by $2 million while capturing $3 million from each other so they'll essentially both have just $3 million if they both decide to advertise.

With the above scenarios, it is better for both companies to ADVERTISE if there is NO COLLUSION. This is because it ensures that they do not get the lowest payoff of $2 million if the other company decides to advertise and they do not.

However, if they DO COLLUDE. They must both decide that NONE of them SHOULD ADVERTISE and this would leave them with their original $5 million each which is a higher payoff than the $3 million they will both receive if they were both advertising.

3 0
3 years ago
Rosie's flowers company in tulips, ohio, uses an e-commerce software program on its website to allow customers to enter their ow
Anna71 [15]
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5 0
3 years ago
High school football is arguably more popular in West Texas than in any other region of the country. During football​ season, sm
Furkat [3]

Answer:

The answer is D. All of the above are plausible

Explanation:

A. Opportunity costs are relatively low is reasonable because as football game is taking place, most of the local people will go to the field to enjoy the field rather than spending their time at local shops/restaurants. Moreover, there are not many people from other towns visiting these facilities because of far distance.

B. is reasonable because it is high school football not professional football so the expenses spent on watching the game is low.

C. is is plausible because these towns are quite remote so watching their young neighbors/relatives playing may be one of the few entertainment choices available to them in weekend.

=> So, the answer is D.

8 0
3 years ago
On January 1, Concord Corporation had 113000 shares of $10 par value common stock outstanding. On March 17 the company declared
Alik [6]

Answer and Explanation:

The Journal entry is shown below:-

March 17

Stock Dividend Dr, $84,750 (113,000 × 5% × $15)

     To Common Stock Dividend Distributable $56,500 (113000 × 5% × $10)

     To Paid in capital in excess of Par - Common Stock $28,250

(Being stock dividend is recorded)

Here we debited the stock dividend and we credited the Common Stock Dividend Distributable and Paid in capital in excess of Par - Common Stock

6 0
3 years ago
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