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Vadim26 [7]
3 years ago
12

he following information relates to current production of outdoor chaise lounges at Backyard​ Posh: Variable manufacturing costs

per unit $ 105 Total fixed manufacturing costs ​$525,000 Variable marketing and administrative costs per unit $ 33 Total fixed marketing and administrative costs ​$250,000 The regular selling price per chaise lounge is $ 350. The company is analyzing the opportunity to accept a special sales order for 400 chaise lounges at a price of $ 200 per unit. Variable marketing and administrative costs would be $ 15 per unit lower than on regular sales. Fixed costs would increase by $ 13 comma 000. The company has the capacity to produce 35 comma 000 chaise lounges per​ year, but is currently producing and selling 9 comma 000 chaise lounges per year. Regular sales will not be affected by the special order. If the company were to accept this special​ order, how would operating income be​ affected? A. Decrease by $ 30 comma 800 B. Decrease by $ 17 comma 800 C. Increase by $ 30 comma 800 D. Increase by $ 17 comma 800
Business
1 answer:
dem82 [27]3 years ago
4 0

Answer:

Increase by $17,800

Explanation:

If the company accepts the special order for 200 chaise lounges, its profit will be:

Sales revenue = 400 x $200 =                                                       $80,000

variable production costs = 400 x $105 =                                     ($42,000)

variable marketing and administrative costs = 400 x $18 =          ($7,200)

<u>increase in fixed costs =                                                                 ($13,000)</u>

profit resulting from the special order =                                         $17,800                                        

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Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Assume that
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Answer:

C) 6 pounds of pork and 8 pounds of tomatoes

Explanation:

Explanation:

            Labor hours to make 1 lb. of:          lbs. produced in 24 hours

                 Pork                  Tomatoes              Pork            Tomatoes

Farmer         6                            3                       4                       8

Rancher       4                            4                       6                       6

If both decide to specialize in producing only one good, the farmer will produce 8 pounds of tomatoes per day and the rancher will produce 6 pounds of pork per day.

This way when the rancher trades 4 pounds of pork in exchange for 6 pounds of tomatoes, he is gaining 2 pounds of pork which is equivalent to 8 labor hours.

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3 years ago
Larry is looking for ways to increase the number of different tasks that an employee performs without increasing task complexity
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Answer:

Job rotation

Explanation:

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On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 74,000 shares authori
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Answer:

1,                            Journal entries

Date    Account and explanation         Debi$       Credit$

          Treasury stock (5200*27)          140,400

           Cash                                                              140,400

           (To record purchase treasury stock)

            Cash (1,050*33)                           34,650  

            Paid in capital from sale of treasury stock    6,300

            Treasury stock (1,050*27)                               28,350

             (To record sale of treasury stock)  

              Cash (4,150*22)                             91,300

              Paid in capital from sale of            6,300

              treasury stock  

              Retained earnings                         14,450

              Treasury stock (4,150*27)                                112,050

              (To record sale of treasury stock)  

2.  Revised equity section

<u>Contributed capital</u>

Common Stock                             740,000

Paid in capital in excess of           <u>226,000</u>

par value-Common Stock

Total paid in capital                        966,000

Retained earnings                         <u> 880,000</u>

Total                                                1,846,000

Less: Treasury stock                      <u>(140,400)</u>

Total Stockholder's equity            $<u>1,705,600</u>

5 0
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2 years ago
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for
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Answer and Explanation:

The computation of given question is shown below:-

                                     <u> Hi-Test Company</u>

                            <u>Weighted-average method</u>

                                                              <u>Equivalent units</u>

<u>Particulars                            Physical units  Material  Conversion costs</u>

Units to be accounted for

Beginning work-in-progress    2,000

Production started                    28,000

Total units                                  30,000

Units accounted for:

1. Completed and transferred

out                                             23,000        23,000        23,000

                                                                 (23,000 × 100%)

Ending work-in-progress          7,000          7,000           2,800

                                                               (7,000 × 100%) (7,000 × 40%)

2. Total units                             30,000         30,000       25,800

                                           <u>Materials   Conversion costs  Total costs</u>

<u>Costs to account for:</u>

Beginning work in

progress                              $45,000        $56,320               $101,320

                                                  ($25,600 + $30,720)

Costs added during

period                                  $375,000      $341,000            $716,000

Total costs                           $420,000     $397,320            $817,320

÷

Total equivalent unit

of production                         $30,000      $25,800

3. Cost per equivalent unit   $14.00         $15.40

Cost accounted for

4. Completed and transferred

out                                         $322,000     $354,200         $676,200

                                      (23,000 × $14.00) (2,800 × $15.40)

7. Ending work in progress   $98,000        $43,120            $141,120

                                    (30,000 × $14.00) (25,800 × $15.40)

Total cost                                $420,000     $397,320         $817,320

4 0
3 years ago
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