Answer:
1.- financial advantage for $31,720
2.- the minimum price can be 6.80 dollars
Explanation:
For the special order we should only consider the variable cost as will not alter the fixed cost structure for the firm:
sales price $ 19.00
variable cost
Direct Materials 1.70
Direct Labor 3.00
Variable overhead 0.60
Variable S&A <u> 1.50 </u>
Total variable: 6.80
contribution per unit: $12.2
total contribution for 2,600 units: $31,720
2.- the inferior units can be sold for the variable cost to avoid a negative contribution.
It would be part of <span>controlling</span>
Answer:
Crane Company
If Crane Company uses LIFO, the value of the ending inventory is:
= $440.
Explanation:
a) Data and Calculations:
Units Unit Cost Total Cost
1/1/20 inventory 150 $4.00 $600
1/15/20 Purchase, 70 5.10 357
1/28/20 Purchase, 70 5.30 371
Total 240 $1,328
1/31/20 inventory 110 $4.00 $440 ($4.00 * 110)
b) The LIFO method assumes that goods that are sold first are the last that were purchased. Therefore, the cost of the ending inventory is usually based on the cost of the earlier inventory purchased. In our case, the cost per unit was based on the beginning inventory balance.
Answer:
A: Yes
Explanation:
The additional worker would cost $100 per day i.e. Marginal Cost = $100
Whereas the Marginal Revenue = (2,750-2,600) = $150
Since Marginal revenue exceeds marginal cost by (150-100) = $50, Cindy should hire 12th worker.
Answer:
Hypertonic soil
Explanation:
In the case study, the young farmer added 60% more fertilizer believing that more fertilizer would simply cause the plants to grow faster. He thought that, since fertilizer helps plants grow, more fertilizer would simply accelerate the processes. He created, however, a hypertonic soil environment rich in potassium and phosphorous, causing the water to leave the corn cells to go to the soil (osmosis effect) leaving them to wither.
