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aalyn [17]
3 years ago
5

Deep River, a manufacturer of electronic cameras, has excess capacity. The company's New Hampshire plant has the following per-u

nit cost structure for item no. 656: Variable manufacturing $ 50 Fixed manufacturing 35 Variable selling 6 Fixed selling 9 Traceable fixed administrative 2 Allocated administrative 1 The traceable fixed administrative cost was incurred at the New Hampshire plant; in contrast, the allocated administrative cost represents a "fair share" of Deep River's corporate overhead. New Hampshire has been presented with a special order of 5,900 units of item no. 656 on which no selling cost will be incurred. The proper relevant cost in deciding whether to accept this special order would be:
Business
1 answer:
tiny-mole [99]3 years ago
6 0

Answer:

$50 per unit.

Explanation:

Relevant cost are the only cost that will be  affected by the management decision to produce the special order. All fixed costs are sunk costs and are therefore irrelevant to the decision. Since to selling cost will be incurred, this implies that only the Variable manufacturing $50 is relevant.

Therefore, the proper relevant cost in deciding whether to accept this special order would be $50 per unit.

And the total relevant cost would be:

Total relevant cost to order no 656 = Number of units * Variable manufacturing = 5,900 * $50 = $295,000.

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What are important of storing​
Free_Kalibri [48]

Answer:

I'm sorry, but the way you worded this is impossible to understand. SO therefore, I cannot answer your question.

Explanation:

8 0
3 years ago
Beto Company pays $4.70 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is con
Anastasy [175]

Here, we are decide the best option between making the part or buying the part.

a.                  Make or Buy Analysis

Particulars                              Make amount    Buy amount

Direct Materials                            $4.50

Direct Labor                                $1.00  

Overhead (80% of Direct Labor)    $0.80  

Cost to buy                            <u>              </u>            <u>$4.70</u>

Cost per unit                              <u>$5.70    </u>          <u>$4.70</u>

Cost Difference = $5.70 - $4.70

Cost Difference = $1.00

Therefore, the cost difference of making amount over buying amount is $1.00.

b. Because of the difference, Beto should buy the part because its cost is lesser than to make the part.

Therefore, the buying of the part is the best decision.

See similar solution about Analysis

<em>brainly.com/question/23287319</em>

3 0
2 years ago
Company C has a machine that, working alone at its constant rate, processes 100 units of a certain product in 5 hours. If Compan
r-ruslan [8.4K]

Answer:

Therefore the constant rate of new machine should be 30 units per hour.

Explanation:

Given that,

Company C has a machine that, working alone at its constant rate.

In 5 hours it produced 100 units certain product.

In 1 hour it produced (100÷5) units certain product.

                                     =20 units.

So,the constant rate of this machine is 20 units per hours.

Company C buys a new machine.

If two machine are working together,

In 2 hours, they produces 100 units.

In 1 hour, they produces (100÷2) units=50 units.

The constant rate of both machines is 50 units per hours.

Since first machine produces 20 unit per hour.

Then, the new machine produces =(50-20) =30 units per hour.

Therefore the constant rate of new machine should be 30 units per hour.

7 0
3 years ago
TH Manufacturers expects to generate cash flows of $129,600 for the next two years. At the end of the two years the business wil
arsen [322]

Answer:

Vo  = <u>C1  </u>    +        <u>C2 + V2</u>

        1 + k              (1 + K)2

Vo = <u>$129,600  </u> +   <u>$129,600 + $3,200,000</u>

        1 + 0.14            (1 + 0.14)2

Vo = $113,684.21  + $2,562,019.08

Vo = $2,675,703.29

The correct answer is C

Explanation:  

The current value of the business equals cashflow in year 1 divided by 1 + K plus the aggregate of cashflow and sales value in year 2 divided by 1 + k raised to power 2.

7 0
3 years ago
Why is it important to distinguish between unilateral and mutual mistakes?
SVEN [57.7K]

Answer:

The correct answer is because it determines which contracts could be voidable

Explanation:

A unilateral mistake is when just one party to a contract is mistaken as to the terms contained in a contract.

Commonly, the unilateral mistake does not make a contract void; The mutual mistake makes it.

6 0
3 years ago
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