Answer:
since the special order does not affect current normal sales, its analysis should only consider incremental expenses, not regular expenses:
A) Income statement without the special order
total revenue = $68 x 80,100 = $5,446,800
- COGS = ($2,446,880)
- Direct materials $897,120
- Direct labor $608,760
- Overhead $941,000
gross profit = $2,999,920
- SG&A = ($1,022,000)
- Selling exp. $559,000
- Administrative exp. $463,000
net income = $1,977,920
B) incremental revenue from special order = 14,900 x $63 = $938,700
incremental costs:
- direct materials = ($897,120 / 80,100 units) x 17,900 = $200,480
- direct labor = ($608,760 / 80,100 units) x 17,900 = $136,040
- overhead = ($658,700 / 80,100 units) x 17,900 = $147,200
- selling expenses = [($335,400 / 80,100 units) x 17,900] + ($2.70 x 17,900) = $74,952 + $48,330 = $123,282
- administrative expenses = $940
- total incremental costs = $607,942
incremental gain from special order = $938,700 - $607,942 = $330,758
Income statement with the special order
total revenue = $6,385,500
- COGS = ($2,930,600)
- Direct materials $1,097,600
- Direct labor $744,800
- Overhead $1,088,200
gross profit = $3,454,900
- SG&A = ($1,146,222)
- Selling exp. $682,282
- Administrative exp. $463,940
net income = $2,308,678
Answer:
Kuley
If she receives annual payments of X, with her first payment of X received in 8 years and her last payment of X received in 15 years, then the amount of each payment is:
X = $50,944.35
Explanation:
a) Data and Calculations:
Amount in savings account in 8 years' time = $263,700
Annual return rate = 8.17%
Period of savings from Year 8 to Year 15 = 7 years
Annual payments = X
X = $50,944.35
From an online financial calculator, the payment is determined as follows:
N (# of periods) 7
I/Y (Interest per year) 8.17
PV (Present Value) 263700
FV (Future Value) 0
Results
PMT = $50,944.35
Sum of all periodic payments $356,610.45
Total Interest $92,910.45
Answer:
The correct answer is option b.
Explanation:
Economies of scale refer to the reduction in the average cost of production as the quantity of output produced increases. In the production process, there is some fixed and variable cost involved.
The average cost of production is the ratio of the total cost incurred in the process of production and the level of output. It is the cost of producing each unit of output.
The producers can reduce their cost of production through the division of labor and specialization.
First, we can find how many cents there are in $10. 10 dollars x 100 cents per dollar = 1000. Then, we divide 1000 by 70 which is equal to 14.29, which rounds to 14. So, Jessica can buy 14 pencils.
To find how much is left we multiply 14 x .70 which gets $9.80. $10 - 9.80 = .20, so she will have 20 cents left over.
Hope I helped!