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
LenaWriter [7]
4 years ago
12

Gwinnett Barbecue Sauce Corporation manufactures a specialty barbecue sauce. Gwinnett has the capacity to manufacture and sell 1

0,000 cases of sauce each year but is currently only manufacturing and selling 9,000. The following costs relate to annual operations at 9,000 cases: Total Cost Variable manufacturing cost $126,000 Fixed manufacturing cost $45,000 Variable selling and administrative cost $18,000 Fixed selling and administrative cost $27,000 Gwinnett normally sells its sauce for $30 per case. A local school district is interested in purchasing Gwinnett's excess capacity of 1,000 cases of sauce but only if they can get the sauce for $15 per case. This special order would not affect regular sales or total fixed costs or variable costs per unit. If this special order is accepted, Gwinnett's profits for the year will:
Business
1 answer:
Gennadij [26K]4 years ago
7 0

Answer:

b. decrease by $1,000

Explanation:

There is an option below the question ask for details

For computing the profit or loss, first we have to determine the variable cost per unit which is shown below:

= Total variable cost ÷ Number of cases sold

= $144,000 ÷ 9,000 cases

= $16 per cases

The total variable cost would be

= $126,000 + $18,000

= $144,000

And, profit per case is $15

So, the loss per case would be

= $15 per case - $16 per case

= -$1 per case

So, the total loss would be

= 1,000 cases × $1

= $1,000 decrease

You might be interested in
A buyer offers the full $215,000 asking price for a house. The offer contains this clause: "Possession of the premises on August
Sergio [31]

Options:

) The man has accepted the woman's offer. Because the reason for the change was out of the man's control, the change is of no legal effect once he signed the contract. B) The man has rejected the woman's offer and made a counteroffer, which the woman is free to accept or reject. C) While the man technically rejected the woman's offer, his behavior in scheduling movers creates an implied contract between the parties.

Answer: The man has rejected the woman's offer and made a counteroffer, which the woman is free to accept or reject.

Explanation: Since there has been an alteration in the content of the initial agreement between the buyer and the seller, the agreement has become void and hence, the changes makes it a counteroffer which the buyer is free to accept or reject. Even though the change in the initial agreed document is the date, it is enough to render the initial document void as the terms is no longer consistent with what the potential buyer read and signed on.

6 0
4 years ago
Some accountants argue that variances should be written off directly to cost of goods sold, regardless of materiality, because:
Citrus2011 [14]
I had to look for the options and here is my answer. 

Some accountants assert that variances should be written off directly to the price of the sold goods, regardless or materiality because product proration would indicates that assets values on the balance sheet consist of the inefficiency costs.
8 0
3 years ago
In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazine
rodikova [14]

Answer:

$2.5

Explanation:

Given:

Number of sandwiches in basket = 20

Number of magazines in basket = 30

cost of sandwiches in 2006 = $4

Cost of magazines in 2006 = $2

cost of sandwiches in 2007 = $5

Consumer price index in 2007 = 125

Now,

Consumer price index = \frac{\sum(p_1q0)}{\sum(p_0q0)}\times100

or

125 = \frac{20\times\$5+30\times X}{20\times\$4+30\times\$2}\times100

here,

X is the price of magazines in 2007

thus,

125 = \frac{\$100+30\times X}{$80+$60}\times100

or

1.25 × ($80 + $60 ) = $100 + 30X

or

30X = $175 - $100

or

X = $2.5

Hence,

The price of magazines in 2007 was $2.5

4 0
4 years ago
The development of market power by a firm is considered to be a market failure because firms with market power will
Zepler [3.9K]
The correct answer is that firms with market power will produce less and charge a higher price than what would be socially optimal.
7 0
3 years ago
Who focuses on project interdependencies and helps to determine the optimal approach for managing and realizing the desired bene
son4ous [18]

Answer:

Program Project Manager

Explanation:

Program Project Manager focuses on project inter-dependencies and helps to determine the optimal approach for managing and realizing the desired benefits. An example of a program would be a new communications satellite system program, comprising projects for designing the satellite, constructing and integrating the individual systems and launching the satellite.

5 0
4 years ago
Other questions:
  • How much did jason alexander make per episode?
    14·1 answer
  • Sweet has year-end account balances of Sales Revenue $811,419, Interest Revenue $12,690, Cost of Goods Sold $575,593, Administra
    6·1 answer
  • Which of the following taxpayers does not have to file a tax return for 2019?
    7·1 answer
  • Chemicals should be stored away from:​
    14·1 answer
  • Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company: Account Title D
    11·1 answer
  • While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computer
    5·1 answer
  • Tracking the ____________ over time is important because it is closely tied with other economic variables and provides a general
    10·1 answer
  • Eight months ago, you purchased 400 shares of Winston stock at a price of $46.40 a share. The company pays quarterly difidents o
    12·2 answers
  • Why is all else held constant along a demand curve? Group of answer choices To isolate how a change in price impacts a change in
    6·1 answer
  • Question 1 of 10
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!