1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oxana [17]
2 years ago
7

Nguyen, Inc. has received a bid for 15 comma 000 units. The costing estimates show that the average cost per unit for this bid w

ill be $ 700. The company uses costminusbased pricing and adds 20​% markup to total costs. What total price will Nguyen ask for the entire​ order? A. $ 2 comma 100 comma 000 B. $ 12 comma 600 comma 000 C. $ 10 comma 500 comma 000 D. $ 8 comma 400 comma 000
Business
1 answer:
8_murik_8 [283]2 years ago
4 0

Answer:

B. $ 12 comma 600 comma 000

Explanation:

15,000 units x $700 cost per unit = 10,500,000 total cost

markup policy for the firm: 20% of total cost

the sales price will be the total cost for the order plus a 20% of that cost as a gross profit margin.

sales price = cost x (1 + 20%)

sales price = total cost x 1.20

sales price = 10,500,000 x 1.2 = 12,600,000

You might be interested in
Brightstone Tire and Rubber Company has capacity to produce 221,000 tires. Brightstone presently produces and sells 169,000 tire
Firdavs [7]

Answer and Explanation:

A. The preparation of the differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors is presented below:

                                            Differential analysis

                        Reject (Alternative 1) or accept (Alternative 2)

                                                             Jan 21

Particulars     Reject order        Accept order    Differential effect on income

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

Revenues

(26,000 tires × $93.6)             $2,433,600          $2,433,600

Less: cost

direct material

(26,000 tires × $54)               -$1,404,000            -$1,404,000

Direct labor

(26,000 tires × $24)               -$624,000               -$624,000

Variable factory overhead

(26,000 tires × $24 × 0.62)   -$386,880               -$386,880

Variable selling and admin expenses

(26,000 tires × $25 × 0.44) - ($114 × 4%)

                                              -$167,440                -$167,440

Shipping cost

(26,000 tires × $7.65)           -$198,900                 -$198,900

Certification cost                  -$165,424                  -$165,424

Income or loss                       -$513,044                   -$513,044

B. As we can see that there is a loss of   -$513,044 so the special order should be rejected

C. The minimum price is

= Selling price - differential income per unit

= $93.6 - (-$513,044 ÷ 26,000 tires)

= $93.6 - (-$19.73)

= $113.33

5 0
3 years ago
EB15.
Tems11 [23]

Answer:

Cost per unit under variable costing                               $

Direct material                                                                 110

Direct labour                                                                    150

Variable manufacturing overhead                                 <u> 75 </u>

Cost per unit                                                                   <u>335 </u>

<u />

Cost per unit under absorption costing                         $

Direct material                                                                 110

Direct labour                                                                    150

Variable manufacturing overhead                                  75    

Fixed manufacturing overhead ($2,700,000/90,000)  <u>30</u>        

Cost per unit                                                                   <u>365</u>

Explanation:

In variable costing, cost per unit is calculated by the addition of all variable costs while in absorption costing, fixed manufacturing overhead      application rate is added to the variable costs in order to obtain the cost per unit.

8 0
3 years ago
According to liquidity preference theory, if the quantity of money demanded is greater than the quantity supplied, then the inte
melisa1 [442]

Answer:

The correct answer is option A.

Explanation:

Liquidity preference theory was given by J.M Keynes. He states that money is demanded by people because it holds certain liquidity.

There are various motives involved for which people prefer liquidity. These motive are precautionary, transactionary and speculative motives respectively.

When the demand for money is more than supply, it means there is excessive demand. This excess demand will lead to increase in the interest level. At higher interest, the quantity of money demanded will fall.

4 0
3 years ago
Equipment with an estimated market value of $55,000 is offered for sale at $75,000. The equipment is acquired for $20,000 in cas
baherus [9]

Answer:

The amount used in the buyer's accounting records to record this acquisition is $60,000.

Explanation:

Amount in the buyer's accounting records to record this acquisition = Cash paid + Note payable

= $20,000 + $40,000

= $60,000

Therefore, The amount used in the buyer's accounting records to record this acquisition is $60,000.

8 0
3 years ago
Domniqued is a customer<br><br>​
Liula [17]

Answer:

what the question? nmm

6 0
3 years ago
Other questions:
  • Trendown inc. has launched a plan to completely transition from a clothing retailer to a cosmetic brand by the end of the year.
    9·1 answer
  • Tv advertising is considered to be particularly advantageous because ________.
    14·1 answer
  • 1) true or false :
    11·1 answer
  • Hibiscus Corporation began operations on January 1, Year 1. On December 15, Year 1, the company received a payment in the amount
    13·1 answer
  • A bond has yield to maturity of 7.15 percent; face value of $1,000; time to maturity of 11 years and pays coupons semiannually.
    11·1 answer
  • The Baldrige Award aims to: (I) publicize successful quality programs. (II) recognize quality achievements of U.S. companies. (I
    14·1 answer
  • Dani's denim sells blue jeans. in 2017, dani's specialized in selling moderately priced jeans with a 25% markup. in 2018, dani's
    5·2 answers
  • When determining the level of control and independence of an employee or independent contractor, which category covers how the w
    9·1 answer
  • Guys please help, List the economic activities to delivering evening news bulletin to your television or radio​
    5·1 answer
  • A tax on the amount of money a person earns in a year is a(n)
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!