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Sergeeva-Olga [200]
3 years ago
13

Minor Electric has received a special one-time order for 600 light fixtures (units) at $8 per unit. Minor currently produces and

sells 3,000 units at $9.00 each. This level represents 75% of its capacity. Production costs for these units are $9.00 per unit, which includes $6.00 variable cost and $3.00 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $550 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $850 on the special order, the size of the order would need to be:
Business
1 answer:
chubhunter [2.5K]3 years ago
6 0

Answer:

700 units

Explanation:

Calculation for the what the size of the order will be.

Using this formula

Unit to sell= Total additional fixed costs + desired profit / Contribution margin per unit=

Let plug in the formula

Units to sell=$550 + $850 / (8-6)

Units to sell= $1,400/2

Units to sell=700 units

Therefore the size of the order will be 700 units

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If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would ther
Xelga [282]

Answer:

C.105,500 units

Explanation:

Equivalent unit of production is the quantity of work done in the manufacturing / production department. It also includes the completed percentage portion of the units in work in process.

Units complete and transferred = Beginning units + Additions - uncompleted units = 10,000 units + 100,0000 units - 15,000 units = 95,000 units

Equivalent Units = Units complete and transferred + ( Closing units x percentage completion )

Equivalent Units = 95,000 + ( 15,000 x 70% )

Equivalent Units = 95,000 + 10,500

Equivalent Units = 105,500

4 0
3 years ago
The Acmeville Metropolitan Bus Service currently charges $0.67 for an all-day ticket, and has an average of 513 riders a day. Th
Andreyy89

Answer:

Explanation:

Price elasticity = Percentage change in demand/Percentage change in Price

Percentage change in Q= 513-236=277/513x100 = 53.99%

Percentage change in P= 0.89-0.67= 0.22/0.67x100 = 32.83%

Ed=53.99/32.83 = 1.6

Since the price elasticity of demand is elastic so the company should decrease the price to increase revenu

4 0
3 years ago
Martin Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no broker
Rashid [163]

Answer: $57,000,000

Explanation:

The employees purchased at a 20% discount which means that this 20% discount is the amount that would have to be covered by the company's pretax earnings:

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= $57,000,000

<em>Martin's pretax earnings will be reduced by $57 million because the company would have to cover the discount on the shares. </em>

8 0
3 years ago
If nicotine in cigarettes is highly addictive, why would it make economic sense for producers of cigarettes to offer free sample
makkiz [27]
If the nicotine cigarettes are highly addictive and they were to offer the free samples to young adults then it will make the people be highly addictive in the nicotine cigarettes and this will cause the economy in the producers to have a less demand in elasticity. If it has a less elasticity, then it will cause a large price change, affecting the consumed quantity by the consumers.
8 0
3 years ago
Read 2 more answers
"You are in the middle of a discussion with an institutional client over the phone, where you recommend that the client buy 100,
docker41 [41]

Answer:

The colleague has committed a violation because your customer's order could move the price of ABC stock

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Front running is also called tailgating. It is a prohibited practice where a trader enters into a position security based on non-public information about a large trade that will influence the price of the security.

The trade is initiated to take advantage of the new price that the large trade will cause. The position is entered before the large trade occurs.

In this scenario your neighbour heard you telling your client to but 100,000 share of ABC. Because the transaction will influence the market he also tells his client to buy 10,000.

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3 0
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