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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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Answer: Increase by $3,500

Explanation:

The Net Working Capital of a company is calculated by subtracting Current liabilities from current assets.

Raw materials are current assets and Accounts Payable are current liabilities.

The Net working capital resulting from accepting this project is;

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= $3,500

Net Working capital investment would increase by $3,500.

6 0
2 years ago
15 POINTS!
statuscvo [17]
1. The curved line represents the distribution of cumulative % of income among individuals arrayed by fifths or quintiles.
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4. The straight line represents the ideal or equal distribution of income among individuals. The further away the curved line is from the straight line, the more unequal the distribution of income in the population under study is.
3 0
3 years ago
One of the departments at Yolo Industries has entered into a 9 year lease for a piece of equipment. The annual payment under the
Darya [45]

Answer:

PV= $22,677.03

Explanation:

Giving the following formula:

Number of periods (n)= 9 years

Annual payment (A)= $3,800

Discount rate (i)= 12%

<u>First, we will calculate the future value of the payments using the following formula:</u>

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

FV= {3,800*[(1.12^9) - 1]} / 0.12 + {[3,800*(1.12^9)] - 3,800}

FV= 56,147.49 + 6,737.7

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PV= FV / (1 + i)^n

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PV= $22,677.03

5 0
3 years ago
Which of the following businesses is NOT possible to be rivaled?
Luba_88 [7]

Answer:

A. an electric company

Explanation:

Among all the options given above, it is an electric company that cannot be rivaled due to the fact that, all household definitely need electricity in-order to power their home. Due to the nature of the company and how capital intensive it is, it would always be in demand by the people.

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You are the regional sales manager for Standard Publishing Co. The company is preparing adjusting entries for the year ended Mar
solniwko [45]

Answer:

Standard Publishing Co.

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= $35,000.

Explanation:

a) Data and Calculations:

September 1, 2020 Cash receipt for magazine subscriptions for three years = $180,000

This subscriptions is equal to 36 months subscription.

The amount of subscription revenue to report for the year ended March 31, 2021 = $35,000 ($180,000 * 7/36).

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The unearned subscription revenue is debited with $35,000, while earned subscription revenue is credited with the same amount.

8 0
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