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Klio2033 [76]
3 years ago
15

Assume that Kubin Company produced 30,750 units and expects to sell 30,390 of them. If a new customer unexpectedly emerges and e

xpresses interest in buying the 360 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer?
Fixed selling expense $ 5.10
Fixed administrative expense $ 4.10
Sales commissions $ 2.60
Variable administrative expense $ 2.10
Business
2 answers:
Georgia [21]3 years ago
7 0

Answer:

Incremental selling and administrative cost per unit to be incurred to sell extra 30 units = Sales commissions + Variable administrative expenses = $2.60 + $2.10 = $4.70

Explanation:

Viktor [21]3 years ago
3 0

In order to quote a price to sell the remaining 360 units, we will have to understand that fixed selling expenses and fixed administrative expenses have already been covered by usual sales of 30390, Thus in order to produce the 360 units the organisation will incur variable expenses per unit, thus they can quote a price which is lower than what they quote normally.

In the given question the incremental selling and administrative cost will be as below:

Sales Commissions                                                     $2.6

Variable Administrative Expenses                             $2.10

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Answer:

b. NPW(SL): $33,738; NPW(DDB): $37,068; Recommendation: DDB

Explanation:

The computation is shown below:

As we know that

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=  [Cash Flow ÷ (1 + Rate of Interest)^Year]

where,

Rate of Interest = 10%

Under Straight-line depreciation:

Beginning book value = $50,000

Salvage value = $5,500

So, the depreciationper year is

=  [($50,000 - $5,500) ÷ 5]

= $8,900

<u>Year    Beginning   Depreciation  End                 Present value </u>

<u>            book value                  book value of depreciation </u>

1            $50,000      $8,900        $41,100             $8,090.91

2           $41,100         $8,900        $32,200           $7,355.37

3           $32,200       $8,900         $23,300           $6,686.70

4           $23,300       $8,900         $14,400           $6,078.82

5           $14,400        $8,900         $5,500              $5,526.20

                                                                                  $33,738.00

Under Double declining depreciation:

Depreciation rate per year = (1 ÷ Useful  Life) × 100

= 1 ÷ 5 × 100

= 20%

Now for double-declining, the rate is doubled

So,

= 20% × 2

= 40%

<u>Year    Beginning   Depreciation  End                 Present value </u>

<u>            book value                  book value of depreciation </u>

1            $50,000      $20,000       $30,000           $18,181.82

2           $30,000       $12,000       $18,000            $9,917.36

3           $18,000       $7,200         $10,800            $5,409.47

4           $10,800       $4,320         $6,480             $2,950.62

5           $6,480       $980              $5,500            $608.50

                                                                                $37,068

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The amount of material used in making a custom sail for a sailboat is normally distributed with a standard deviation of 64 squar
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Answer:

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Explanation:

Data provided in the question:

Standard deviation = 64 square feet

Sample size, n = 15

Mean = 912

Confidence level = 99%

Now,

Confidence interval = Mean ± z[s ÷ √n]

here,

z = 2.58 for 99% confidence level

Thus,

Confidence interval = 912 ± 2.58[64 ÷ √15]

or

Confidence interval = 912 ± 2.58[64 ÷ √15]

or

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or

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Answer:

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8 0
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