Depending on where there located
Answer:
1.- financial advantage for $31,720
2.- the minimum price can be 6.80 dollars
Explanation:
For the special order we should only consider the variable cost as will not alter the fixed cost structure for the firm:
sales price $ 19.00
variable cost
Direct Materials 1.70
Direct Labor 3.00
Variable overhead 0.60
Variable S&A <u> 1.50 </u>
Total variable: 6.80
contribution per unit: $12.2
total contribution for 2,600 units: $31,720
2.- the inferior units can be sold for the variable cost to avoid a negative contribution.
Answer:
Identification of Features Applying More to Job Order Operations, Process Operations, or Both:
Features
1. Cost object is a process. Process Operations
2. Measures unit costs only at period-end. Process Operations
3. Uses indirect costs. Both
4. Transfers costs between Work in
Process Inventory accounts. Process Operations
5. Uses only one Work in Process account. Job Operations
6. Uses materials, labor, and overhead costs. Both
Explanation:
The main difference between the two operations is the manner costs are accumulated. Job operations accumulate costs for different jobs that are not similar. Process operations accumulate costs to show the process a product passes through. The product of a process operation is not unique like the product of a job operation.
Answer:
A. slopes upward
Explanation:
(I will include a picture in the attachment to help with the explanation)
Slope upward represent the increase in quantity as the price goes up.
As the price of a product is increased, the potential profit that the producer can generate is also higher. Because of this, they become motivated to supply more product for the customers. They will increase their production output and increase the amount of distributions to the market.
This is why the slope will become upward like the picture above.
