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frutty [35]
4 years ago
9

Crane Company incurred the following costs for 88000 units: Variable costs $528000 Fixed costs 392000 Crane has received a speci

al order from a foreign company for 3000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2400 for shipping. If Crane wants to break even on the order, what should the unit sales price be?
Business
1 answer:
Anton [14]4 years ago
7 0

Answer:

The minimum price is $6.8

Explanation:

Giving the following information:

Crane Company incurred the following costs for 88000 units: Variable costs $528000 Fixed costs 392000 Crane has received a special order from a foreign company for 3000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2400 for shipping.

Because it is a special order and there is unused capacity, we will not have into account the fixed costs.

Unitary cost= (528,000/88,000) + (2,400/3,000)= $6.8 per unit

The minimum price is $6.8

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4. Dairy Co. sells raw cream directly to the public. Maxwell gets sick after consuming some of Fairy Co.’s raw cream. Maxwell su
Len [333]

Answer:

Maxwell will win this case, as per division 2 of UCC, seller bears the cost for loss under implied warranty of fitness, if the goods do not meet the ordinary purpose or is inefficient.

Explanation:

Given in this case, Maxwell is applying "Universal Commercial Code (UCC)" division 2 provision, which defines all the goods and services.

A movable property, which can be sold from seller to the buyer at certain prices are called goods. Therefore, in this case, "Raw Cream" comes in the definition of goods, as it is directly sold to Maxwell by the grocery shop.

Maxwell will win this case, as per division 2 of UCC, seller bears the cost for loss under implied warranty of fitness, if the goods do not meet the ordinary purpose or is inefficient.

5 0
3 years ago
Baxter Publishing sought to reduce expenditures related to the printing of books in its trade and educational market and contrac
Orlov [11]

Answer:

Ethical and social responsibilities

Explanation:

Ethics is simply defined as an individual's personal beliefs on or about a decision, behavior, or action is right or wrong.organizations engages in ethics training. That is some companies offer employees training on how to cope with ethical dilemmas.

Ethical Behavior are refered to as behavior that adapt or conforms to generally accepted social norms.

Corporate Social Responsibility is simply defined as ideas that individuals who are involved in business should pit into due consideration in the social consequences of economic actions when making business decisions and presumption should be available in favor of decisions that have both good economic and social consequences.

The Approaches to Social Responsibility includes:

1- Obstructionist Stance

2- Defensive Stance

3- Accommodative Stance

4- Proactive Stance

3 0
3 years ago
The _____ requires that executive agencies and subcontractors and contractors of the federal government receiving more than $2,5
mariarad [96]

The Vocational Rehabilitation Act of 1973 requires that executive agencies and subcontractors and contractors of the federal government receiving more than $2,500 a year from the government engage in affirmative action for disabled individuals.

<h3><u>Explanation:</u></h3>

The law that grants the states for the independent living, vocational rehabilitation services,  client assistance and supported employment is The Rehabilitation Act of 1973. There are lot of programs that receives  federal financial assistance and are held by many federal agencies. The main aim of this act is to eliminate the discrimination that prevails based on disability.

The Rehabilitation Act has Section 501 which mainly focus on the prohibition of discrimination that exists in employees and  job applicants mainly on the basis of disability. This also makes the agencies to be engaged in affirmative action for individuals who has disabilities. They are providing them $2,500 a year for engaging with these activities.

8 0
3 years ago
Assume the corporate tax view of capital structure. Your unleveraged cost of capital is 13%. Your corporate tax rate is 30%. You
sergejj [24]

Answer:

C. 11.05%

Explanation:

The computation of the cost of capital under the proposed leveraging is shown below;

cost of capital is

=Debt÷ value of leverged firm × ((unlevered cost of capital × (1 - tax rate))

=800 ÷ 1600 × ((13% + (13%) × (1 - 30%)))

= 11.0500%

hence, the cost of capital is 11.05%

8 0
3 years ago
Suppose that there are two industries, A and B. There are five firms in industry A with sales at $5 million, $2 million, $1 mill
Sonja [21]

Answer:

3200

Explanation:

The HHI is calculated by squaring the market share of each firm in the industry.

Market share = sales of a firm / total sales of firms in the industry

total sales of firms in the industry = 5 + 2 + 1 + 1 + 1 = 10

Market share of firm A = (5/10) x 100 = 50%

Market share of firm B = (2/10) x 100 = 20%

Market share of firm C, D, E = (1/10) x 100 = 10%

50² + 20² + 10² + 10²  + 10² = 3200

4 0
3 years ago
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