Answer:
40 books revenue is maximized
Explanation:
Profit is maximized where Marginal cost equals Marginal Revenue. The revenue is maximized where 40 books are sold for the price of $16. The marginal revenue at this point equals the marginal cost. Profit will be maximized for the ABC Books if it sells 40 books at the price of $16 per book. Here Marginal cost is $10 and marginal revenue is also $10. This is profit maximizing point.
Answer:
The special order should be accepted.
Explanation:
Giving the following information:
At Bargain Electronics, it costs $33 per unit ($18 variable and $15 fixed). A foreign wholesaler offers to buy 4,260 units at $29 each. Bargain Electronics will incur special shipping costs of $1 per unit.
Because it is a special offer and there is unused capacity we will not have into account the fixed costs.
Sales= 29*4260= 123,540
Variable costs= 80,940 (-)
Contribution margin= 42,600
The special order should be accepted.
Answer:
a.
Date Account Title Debit Credit
XX-XX-XXX Accounts Receivable $12,040
Fees earned $12,040
b. No it would not have been.
If using the cash basis, the revenue would only be recognized when the cash is paid to the company. As the cash has not been paid, there would be no need to adjust for the revenue in the present period.
Answer:
The net differential decrease in cost for the entire three years is $8750
Explanation:
The benefits from purchasing the new machine includes the receipt of $6,250 salvage value as well as the reduction in variable manufacturing costs by $23,750 for 3 years ($43,750-$20,000).
Also,additional cost needed to acquire the new machine is the purchase price of $68,750,hence the net benefits overall is shown below:
Salvage value $6,250
cost savings($23,750*3) $7,1250
Total benefits $77,500
costs ($68,750)
net benefits $8,750
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Total Variable manufacturing costs 288,000
Unitary variable costs= 288,000/24,000= $12
Rhythm Company has offered to purchase 3,000 IT-54s at $16 each. No variable selling costs will be incurred.
Because it is a special offer and there is available capacity, we will not have into account the fixed costs.
Effect on income= 3,000*(16-12)= $12,000 increase