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ludmilkaskok [199]
3 years ago
14

Two months ago, Air-tite Corporation purchased 5,500 pounds of Hydrol, paying $18,700. The demand for this product has been very

strong since the acquisition, with the market price jumping to $4.05 per pound. (Air tite can buy or sell Hydrol at this price.) The company recently received a special-order inquiry, one that would require the use of 5,100 pounds of Hydrol.
Which of the following is (are) relevant in deciding whether to accept the special order?

A. The 400-pound remaining inventory of Hydrol.
B. The $4.05 market price.
C. The $3.40 purchase price.
D. 5,500 pounds of Hydrol
E. Two or more of the other factors are relevant.
Business
1 answer:
butalik [34]3 years ago
4 0

Answer:

A, B.  

Explanation:

A is relevant as the 400-pound remaining can be sold at market price after the special order

B is relevant as the whole 5,500 can be sold at market price instead of the special order

C is irrelevant as the cost has already been uncured

D is irrelevant

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Business activity monitoring called  uses to make  decisions about the operation of the business?

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A major difference between high-assertiveness and low-assertiveness cultures is that people in low-assertiveness cultures tend t
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B. False

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7 0
3 years ago
Return on sales for south drive is lower in year 2 than year 1 what expense is causing this lower?
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The correct answer is d: Interest Expense. The expense that is causing lower profitability is the Interest Expense.

The fee incurred by a business for borrowed cash is known as an interest expense. On the income statement, it is listed as a non-operating expense. It stands for the interest due on all borrowings, including bonds, loans, convertible debt, and credit lines. In essence, it is determined by multiplying the interest rate by the debt's outstanding principal. Instead of the amount of interest paid over the reporting period, interest expense on the income statement shows interest accrued during that time. While interest costs are tax deductible for businesses, they may not be in the case of an individual, depending on their jurisdiction and the purpose of the loan.

Since there are typically lags between interest accruing and interest paid, interest expense frequently appears as a line item on a company's balance sheet.

Comparative income statements for South Drive Company for Year 2 and Year 1 are given below.

................................................Year 2.......................... Year 1

Sales ....................................900,000 .......................500,000

Cost of goods sold ..........(432,000) ......................(240,000)

Gross profit on sales ........468,000 ........................260,000

Wage expense ..................(54,000) .......................(30,000)

Rent expense ....................(90,000) .......................(50,000)

Operating income .............324,000 ........................180,000

Interest expense............... (80,000)........................ (30,000)

Net income........................ 244,000 ..........................150,000

Return on sales for South Drive is lower in Year 2 than in Year 1. What expense is causing this lower profitability?

a. Cost of Goods Sold

b. Wage Expense

c. Rent Expense

d. Interest Expense

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no it's was not because we don't add

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