Answer:
It is more profitable to rework the units and sell them for $9.1 each.
Explanation:
Giving the following information:
The company has 16,000 defective units that cost $6.00 per unit to manufacture. The units can be a) sold as-is for $3.10 each, or b) reworked for $4.80 each and then sold for the full price of $9.10 each.
<u>The first $6 per unit is a sunk cost, it will remain the same in both options. Therefore, it should not be taken into account to make a decision.</u>
We need to compute the net income of each option:
Sell as-is:
Effect on income= 16,000*3.1= $49,600
Rework:
Effect on income= 16,000*(9.1 - 4.8)= $68,800
It is more profitable to rework the units and sell them for $9.1 each.
Answer:
$5,250
Explanation:
The computation of the bad debt expense for year 2015 is shown below:
= Net Credit sales × uncollectible percentage given
= $175,0000 × 3%
= $5,250
Under the percent-of-sales method, simply we multiplied the net credit sales by the uncollectible percentage given so that the bad debt expense could have come. All other information given is of no significance. So, ignored it
So you can make money my man
Answer:
labor
Explanation:
They are four factors of production. They are labor, capital, land, and entrepreneurship.
Labor is compensation for human skills, knowledge, time, and energy. It is indicated as salary, wages, commissions, or allowances in the books of account. A company's labor expense is influenced by the number of workers it requires. A planned high output will require many workers, while a low-volume production needs fewer workers. Therefore labor is considered a variable cost.
Capital includes the finances, equipment, and machinery required to start a business. Capital is a fixed cost as capital requirements do not vary will the volume of output. Land and entrepreneurship are fixed costs as they are not expected to change in the s
