Answer:
Please refer explanation and attachment
Explanation:
The income statement has been provided in attachment 1 and balance sheet in attachment 2. Unfortunately, due to lack of information such as depreciation, lease details and mortgage payments, the balance could not be tallied. However, all information provided has been used to derive the results shown.
Answer:
1. The financial advantage of accepting the special order is $20,910.
2. The relevant unit cost is the variable selling and administrative expenses of $1.40 per unit.
Explanation:
1. What is the financial advantage (disadvantage) of accepting the special order?
Since this order would not affect regular sales or the company's total fixed costs, it implies that only the variable costs will be considered to determine the financial advantage (disadvantage) of accepting the special order.
Therefore, we have:
Total variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead + Variable selling and administrative expenses = $2.40 + $2.00 + $0.90 + $1.40 = $6.70
Special order financial advantage (disadvantage) = (Special price per unit - Total variable cost per unit) * Units of special order = ($19.00 - $6.70) * 1,700 = $20,910
Therefore, the financial advantage of accepting the special order is $20,910.
2. As a separate matter from the special order, assume the company’s inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for the inferior units?
Since these units are inferior to the current model and must be sold through regular channels at reduced prices, the unit cost that is relevant for establishing a minimum selling price for the inferior units is therefore the variable selling and administrative expenses of $1.40 per unit.
Answer:
Option C is correct one.
Explanation:
Greg recognizes no loss last year and a $4,000 loss this year.
Answer:
Perfect Competition
Explanation:
Perfect competition is a market characterized by many buyers and sellers that have full information and faces no barrier in entry and exit of the markets. It is the ideal form of market structure where competition is at is greatest possible value. The numerous buyers and sellers are engaged in trade of a homogeneous good in the market. It is also characterized by no long run economic profit and no control over prices.
Answer:
False
Explanation:
Both supply and demand concepts rest on the relationship between price and quantity.
Quantity demanded increase when price falls and falls when price increases.
Quantity supplied increases when price increases and falls when price falls.
The demand and supply curve are plotted with price on the y axis and quantity on the x axis.
I hope my answer helps you
