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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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xenn [34]

Answer:

a) true

Explanation:

This is true because, increasing the price of the product sold by an organisation directly lead to the reduction of the operating cost of the said organization, all other things being equal. <em>For example, a glass manufacturing company increasing the selling price per unit glass from $40 to $90 will definitely lead to operating cost reduction.</em>

7 0
3 years ago
A flood damaged several vans belonging to a nongovernmental, not-for-profit organization. A professional mechanic repaired the v
Westkost [7]

Answer:

b. As both an increase in the equipment account and an increase in contributions from donated services.

Explanation:

When the flood damages the vehicles there was a loss in the value of the organisation's equipment. The actor of restoring it to its previous state will require an addition to equipment account. So there will be an increase in equipment.

The services provided by the mechanic were free and will be recorded as a donated service. This is an increase in contributions from donated services.

There is no expense recorded as the services were performed for free.

5 0
2 years ago
Under a contractionary taxation policy, the government can reduce the deficit by
AlexFokin [52]

Answer:

c

Explanation:

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7 0
3 years ago
Read 2 more answers
Based on the following information, determine the amount of equipment on the balance sheet. Total liabilities and owner's equity
hammer [34]

Answer:

$9,950

Explanation:

The amount of equipment shall be determined through accounting equation which is given as follows:

Total Assets=Total liabilities+Total equity

Total assets=Current+Non current assets

Current assets+Non current assets=Total liabilities+Total equity

Non current assets=Cost of land+Cost of equipment-accumulated depreciation on equipment

Current assets+Cost of land+Cost of equipment-accumulated depreciation on equipment=Total liabilities+Total equity

Applying given data in the question to the above equation

$19,800+$15,000+Cost of equipment-$1,550=$44,750

$33,250+Cost of equipment=$44,750

Cost of equipment=$44,750-$33,250=$11,500

Amount of equipment on balance sheet=$11,500-$1,550=$9,950

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3 years ago
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givi [52]

Answer:

TRUE

Explanation:

The CEO 's belief that he has placed his firm in a slow-cycle industry where <u>concerns about protecting unique competencies dominate concerns about market share,</u> is true

Basically, the CEO operates in a niche market as is reported in the scenario

<u>Niche marketing refers to competing within a narrowly defined market segment with a specialized offering.</u>

Most small businesses are generally not niche marketers; they simply have a very small share of a large segment <u>whereas niche marketers have a large market share in a small/tight segment. </u>

Having therefore established his Niche business in a small segment where he has a large market share (otherwise it would not be a niche business), <u>the concerns will be about protecting unique competencies rather than market share</u>

<u />

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