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zubka84 [21]
3 years ago
7

At the end of the year the production manager is taking inventory and finds 600 units of an older model of invisible fencing tha

t the company no longer manufactures. These obsolete units can be disposed of through their regular channels, thereby incurring variable marketing expenses. What is the lowest price that they should accept for these obsolete units, realizing that if they do not sell them these units will have to be thrown away. (Show all supporting calculations).

Business
1 answer:
KatRina [158]3 years ago
7 0

Answer: $12

Explanation:

In selling the obsolete goods, the company will incur Variable Marketing costs and the alternative will be to throw the goods away.

The relevant costs they will incur are therefore the Variable Marketing costs alone.

The lowest amount that a company should accept for a good is the price that equals it's cost so that they may at least Break-Even.

Seeing as the Variable Marketing Costs are the only relevant cost then the lowest they should accept is the Variable Marketing Costs of $12.

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Managers can be classified in terms of either their level in the organization at which they work and or their area of specializa
777dan777 [17]

Answer is true.

Managers who are classified in terms of their level in the organization are known by titles such as store manager, assistant manager or co-manager.

Managers who are classified by their area of specialization have titles such as the marketing manager, the accounting manager or the sales manager.

5 0
3 years ago
Brightstone Tire and Rubber Company has capacity to produce 179,000 tires. Brightstone presently produces and sells 137,000 tire
Mariana [72]

Answer:

A. Reject (Alternative 1) $0

Accept (Alternative 2) -$815,584

Differential effect Income (Alternative 2) -$815,584

B. Goodman should REJECT the special order from Euro Motors

C.$115.69

Explanation:

a. Preparation of a differential analysis dated January 21

DIFFERENTIAL ANALYSIS

Reject (Alternative 1) Accept (Alternative 2) Differential effect Income (Alternative 2)

Revenues $0 $1,613,850 $1,613,850

(21,000 tires × $76.85 per tire)

Costs:

Direct materials 0 –$1,134,000 $1,134,000

(21,000 tires × $54 per tire)

Direct labor 0 –$504,000 $504,000

(21,000 tires × 24 per tire)

Variable factory overhead 0 –$312,480 $312,480

[21,000 tires × ($24 per tire × 62%)]

Variable selling and admin.

expenses 0 –$152,880 $152,880

21,000 tires × [(25 per tire × 44%) – ($93 × 4%)]

Shipping costs 0 –$160,650 $160,650

(21,000 tires × $7.65 per tire)

Certification costs 0 –$165,424 –$165,424

Income (Loss) $0 -$815,584 -$815,584

B. Based on the above Differentials analysis Brightstone should REJECT the special order from Euro Motors.

C. Calculation to determine minimum price per unit that would be financially acceptable to Brightstone

Minimum price per unit =$76.85-(-$815,584/21,000)

Minimum price per unit =$76.85-(-$38.84)

Minimum price per unit=$115.69

Therefore minimum price per unit that would be financially acceptable to Brightstone is $115.69

5 0
3 years ago
9.To what part of an industry does a worker's education contribute?
laiz [17]

Answer:

human capital

Explanation:

Human capital is the economic value brought by workers' experience and skills. It is the attributes, abilities, and quality of labor to influence a firm's productivity. Human capital is enhanced through education, training, and work experiences.

Human capital is an intangible asset to a business. Human capital is a critical element if a business is to achieve its goals. Due to this reason, companies are always investing in improving the quality of their human capital.

4 0
3 years ago
The indirect method for the preparation of the operating activities section of the statement of cash flows: Group of answer choi
weqwewe [10]

Answer:

Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.

Explanation:

FASB is an acronym for Financial Accounting Standards Board. The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors. It was founded in 1972 but began operations fully on the 1st of July, 1973 by replacing the Accounting Principles Board (APB) and American Institute of Certified Public Accountants (AICPA).

When the operating activities section of the statement of cash flows is reported using the indirect method, the FASB requires that, you report net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.

Hence, the indirect method for the preparation of the operating activities section of the statement of cash flows reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.

Some examples of operating activities are cash revenue from the sales of a product, cash paid as an expense for merchandise etc.

3 0
3 years ago
Land was acquired in 2018 for a future building site at a cost of $40,000.
maw [93]

Answer:

(A) $40,000

Explanation:

At the time of recording of the fixed assets, the fixed assets should be recorded at purchase cost or historical price

Since in the question, the land was purchased at $40,000. Moreover, for the tax purpose, the land is valued at $27,000 and the qualified appraiser appraise the value at $48,000. The cash payment is also offered for $46,000

But at the time of recording or reported, the balance sheet would show at the purchase price i.e $40,000

3 0
3 years ago
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