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
Alisiya [41]
3 years ago
7

Adams Furniture receives a special order for 10 sofas for a special price of $3,000. The direct m als and direct labor for each

sofa are $100. In addition, supervision and other fixed overhead costs average $150 per sofa. Should Adams accept the special order? Why or why not? Would it make a difference to your answer if Adams is at full capacity and its current line of sofas sells for $500 each?
Business
1 answer:
Misha Larkins [42]3 years ago
5 0

Answer:

                                                                        $

Special order of sofa                                   3,000

Less: Relevant cost of production:

Direct material & direct labour ($100 x 10) <u>1,000</u>

Incremental benefits                                    <u> 2,000</u>

Adams Furniture should accept the special order because the incremental benefit is $2,000

If Adams Furniture Operates at Full Capacity   $

Sales of sofa (10 x $500)                                    5,000

Les: Relevant cost of production

Direct material & direct labour ($100 x 10)       1,000

Incremental benefits                                            4,000

In this case, Adams Furniture should not accept the special order because the incremental benefit of the special order is less than the incremental benefit at full capacity. Adams Furniture can only accept the special order if the buyer is ready to pay $500 per order as against the $300 per sofa offered by the buyer.

                                 

Explanation:

You might be interested in
Dextra Computing sells merchandise for $15,000 cash on September 30 (cost of merchandise is $12,000). The sales tax law requires
Nitella [24]

Answer and Explanation:

The journal entries are shown below:

1. On Sep 30

Cash    $15750

   To Sales   $15,000

   To Sales taxes payable ($15000 ×5%)  $750

(Being the cash receipts is recorded)

For recording this we debited the cash as it increased the assets and credited the sales and sales tax payable as it increased the revenue and liabilities

2   On Sep 30

Cost of goods sold   $12,000

              To Merchandise inventory $12,000

(Being the cost of goods sold is recorded)

For recording this we debited the cost of goods sold as it increased the expenses and credited the merchandise inventory as it reduced the assets

3  On Oct 15

Sales taxes payable $750

      To Cash $750

(Being cash paid is recorded)

For recording this we debited the sales tax payable as it reduced the liabilities and credited the cash as it decreased the assets

5 0
3 years ago
What does deficit mean?
galben [10]
The definition of deficit is, A sum of money that is small. Also, this can mean a loss of money. Another definition is, the number of loses in sports. Or, individual. Hope this helps
8 0
2 years ago
indicators that the local currency is also the functional currency include all of the following except:
Alchen [17]

Indicators that the local currency is also the functional currency include all of the following except the parent typically provides the financing or provides a guarantee.

A functional currency is one that is utilized in the main economic setting in which a company conducts business. This is the setting in which an entity generates and spends money most frequently. When defining the functional currency of an entity, the following key considerations should be taken into account:

The principal currency influencing retail prices (usually the currency in which prices are denominated and settled).

The money of the nation whose laws and competition have the biggest impact on retail pricing.

The principal currency affecting labor expenses and other costs of goods sold (usually the currency in which prices are denominated and settled).

The currency in which an entity keeps its operating receipts and the currency in which debt and equity instruments are issued are less important deciding factors.

Know more about functional currency here:

brainly.com/question/28013130

#SPJ4

6 0
1 year ago
Which of the following is an essential characteristic of enduringly great companies? They undergo continuous change. They are so
Anit [1.1K]

Answer:

The answer is (A) They undergo continuous change.  

Explanation:

To remain competitive in today’s world, a company must be willing to continue changing according to what the market currently needs and will need in the future. When a company remains stagnant, it would be outpaced by its competitors. Most of the household names that we commonly encounter maintains a spirit of continuous improvement – and we can encounter this from the innovative product they choose to make, better customer experience, or improvement in internal business process.  

7 0
3 years ago
A conservative investor has a portfolio that consists of diversified investments in equity securities, debt securities, and mone
satela [25.4K]

Answer:

Real Estate-Related Investments.

Explanation:

Real estate related investments involves the purchase, management, renting and sale of real estate properties with the aim of making profit.

Real estate investment is capital intensive and has low liquidity compared to other forms of investment.

This will be a good option for the conservative investor because real estate investment is stable and not prone to huge losses that can be incurred in the money markets. Also real estate is not affected by equities market. So will be a safety net in case of failure in the equity market.

4 0
3 years ago
Other questions:
  • 1) A T-bill quote sheet has 90-day T-bill quotes with a 5.17 ask and a 5.11 bid. If the bill 1) has a $10,000 face value, an inv
    11·1 answer
  • Graham receives $640,000 at his retirement. he invests x in a twenty-year annuityimmediate with annual payments and the remainin
    10·1 answer
  • As the only clothes producer, you will not have _____. competition profits production costs
    11·2 answers
  • Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and adminis
    12·1 answer
  • Who knows how to fill out the Journal?
    15·2 answers
  • Consider the two savings plans below. Compare the balances in each plan after 7 years. Which person deposited more money in the​
    13·1 answer
  • Ginny currently earns a (real or nominal) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.0
    11·1 answer
  • Multiple choice-- economics
    8·1 answer
  • Speaking effectively, writing concisely, and listening attentively are all examples of the transferable skill of
    8·2 answers
  • Selina has lost her job. She has been combing the newspapers looking for another one and has been in contact with colleagues to
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!