The present national accounting system does not reflect changes in:

Product A is normally sold for $9.60 per unit. A special price of $7.20 is offered for the export market. The variable productio

elixir [45]

Answer:

A. Reject (Alternative 1) $0.00

Accept (Alternative 2) $1.12

Differentials Effect on income (Alternative 2) $1.12

B. Accepted (Alternative 2)

Explanation:

a. Preparation of a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order.

DIFFERENTIAL ANALYSIS

Reject (Alternative 1) or Accept (Alternative 2)

March 16

Reject Accept Differentials Effect on income

(Alternative 1) (Alternative 2) (Alternative 2)

Revenue per unit $0.00 $7.20 $7.20

Costs:

Variable manufacturing costs per unit

$0.00 -$5.00 -$5.00

Export tariff per unit

$0.00 -$1.08 -$1.08

($7.20*15%=$1.08)

Income (Loss) per unit $0.00 $1.12 $1.12

b. Based on the above differential analysis

the special order should be ACCEPTED (Alternative 2).

5 0

3 years ago

Molly Jasper and her sister, Caitlin Peters, got into the novelties business almost by accident. Molly, a talented sculptor, oft

Paladinen [302]

a. The computation of Mollycaits' operating break-even point is 2,473 units ($4,500/$1.82).

b. The calculation of Mollycaits' EBIT on the department store order is $812.40 ($9,500 - $8,688).

c. If department stores' price were $9.51, the EBIT will be $5,387 ($14,075 - $8,688).

Note that for (b) and (c), the fixed cost is not considered.

d. Without paying more than $7.69, the quantity that will result in an EBIT of $3,700 is 4,505 units ($4,500 + $3,700)/$1.82

e. Varieties of Mollycaits = 15 with variable cost of $5.87

f. The recommendation to Molly and Caitlin with regard to pricing and varieties to offer is that, while the company can varieties to suit the needs of customers, it must ensure that it does not price them below $5.87, its operating cost.

Data and Calculations:

Special contract:

Units of figurines offered = 1,480

Sales value of offer = $9,500

Selling price per unit = $6.42 ($9,500/1,480)

Variable operating cost = $5.87

Contribution margin per unit = $0.55 ($6.42 - $5.97)

Normal business:

Estimated average price per unit = $7.69

Variable operating cost = $5.87

Contribution margin per unit based on average price = $1.82 ($7.69 - $5.87)

Fixed cost per month = $4,500

Thus, Molly and Caitlin can offer various types of figurine, but they must sell at least 2,473 units to break-even.

Learn more about computing break-even points here: brainly.com/question/9212451

5 0

2 years ago

Lemony Company made sales of $ 32 comma 200 million during 2018. Cost of goods sold for the year totaled $ 12 comma 880 million.

Aleksandr [31]

Answer:

Gross profit is 60%

Inventory turnover is 4.6 times

Explanation:

The formula to compute the gross profit percentage is shown below:

= (Gross profit ÷ sales) × 100

where,

Gross profit = Sales - the cost of good sold

= $32,200 million ÷ $12,880 million

= $19,320 million

And, the sales is $32,200 million

Now put these values to the above formula

So, the percentage would equal to

= ($19,320 million) ÷ ($32,200 million) × 100

= 60%

The formula to compute the inventory turnover is shown below:

= (Cost of goods sold) ÷ average inventory

where,

Average inventory = (Beginning inventory + ending inventory) ÷ 2

= ($1,200 million + $1,600 million ) ÷ 2

= $900 million

And, the cost of good sold is $12,880 million

Now put these values to the above formula

So, the turnover would equal to

= $12,880 million ÷ $2,800 million

= 4.6 times

7 0

2 years ago

Your brother is starting 9th grade next year and is thinking about going to college. What steps would you recommend he take?

lawyer [7]

I would say a just to make sure he is making a right chocie

7 0

3 years ago

Read 2 more answers

9) what is one downside of using a savings account instead of a checking 1pc

White raven [17]

Savings account has a limit of 6 withdrawals per month, while checking account does not, is s one downside of using a savings account instead of a checking account.

<h3>What is meant by checking account?</h3>

Checking account is the regular account that facilitates the customer to deposits a withdrawal the money any time with no number of limit.

Checking accounts provides the limitless translation to the customer, and for this use businessman or businesswomen uses this account.

Thus, option B is correct.

For more details about checking account, click here:

brainly.com/question/22857190

#SPJ1

4 0

1 year ago