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kvasek [131]
3 years ago
15

Exercise 14-37 Special Order (LO 14-4, 14-5) [The following information applies to the questions displayed below.] Intercontinen

tal’s special order requires 1,300 kilograms of genotype, a solid chemical regularly used in the company’s products. The current stock of genotype is 9,900 kilograms at a book value of 9.20 p per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of 9.80 p per kilogram. Without the special order, the purchasing manager predicts that the price will be 9.40 p when normal restocking takes place. Any order of genatope must be in the amount of 6,600 kilograms. Exercise 14-37 Part 1 Required: 1. What is the relevant cost of genatope?
Business
1 answer:
FromTheMoon [43]3 years ago
5 0

Answer:

the relevant cost will also include the differential cost for taking the order as it is related to the order being taken or not.

Explanation:

The product is regularly used therefore, it will be sold in the future.

addtional inventory cost:

6,600 x (9.80 - 9.40) = 2,640

Cost of good sold

1,300 x 9.20              = 11,960

<u><em>Total cost for the order 14,600</em></u>

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3 years ago
beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, and the T-bond rate is 5.25%. The
gregori [183]

Answer:

RA=11.6%

Explanation:

RA=Rf+(Rm-Rf)Ba

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3 years ago
Industrial Machines needs to purchase a new machine costing $1.25 million. Management is estimating the machine will generate ca
max2010maxim [7]

Answer:

The firm shouldn't purchase the machine because the IRR is less than the required minimum

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Cash flow in year 0 = $-1.25 million.

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To find the IRR using a financial calculator:

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8 0
3 years ago
The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $7.60/unit; direct labor,
Advocard [28]

Answer: The answer is as follows:

Explanation:

Given that,

Raw material = $7.60/unit

Direct labor = $10.60/unit

Manufacturing overhead = $8.60/unit

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= 7.6 + 10.6 + 8.6

= 26.8

(2) Unit cost under absorption costing = Raw material + Direct labor + variable Manufacturing overhead + fixed Manufacturing overhead

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= 35.4

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3 years ago
When formulating accounting principles, the Securities and Exchange Commission’s role is A : consistently secondary. B : nonexis
navik [9.2K]

Answer:

C: sometimes primary and sometimes secondary.

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When formulating accounting principles, the Securities and Exchange Commission’s role is sometimes primary and sometimes secondary.Securities and Exchange Commission has the responsibility to develop accounting standards which has to be enforced by public companies and they also consistently looked to the private sector for assistance in it. The securities and exchange commission retains the authority to establish the standards which formulate by them.

5 0
3 years ago
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