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3 years ago

The following information relates to current production of bench seats for boats at Aquamarine Manufacturing:

Business

1 answer:

bearhunter [10]3 years ago

6 0

Answer:

The operating income would be affected with a los off $716,000 besides the $95,000 that the company losses operating with the regular order.

Explanation:

Ok with the information provided lets set up the equations (we are going to separate the equations by regular order and especial order):

Regular order:

CT = 775,000 + 132X (Total cost)

TR= 200X (Total Revenue)

OI = 68X - 775,000 (Operating Income)

Especial order:

CT = 785,000 + 117X (Total cost)

TR = 140X (Total Revenue)

OI = 23X - 785,000 (Operating Income)

Now lets see how the operating income is with the production and selling of 10,000 bench seats:

OI = 68(10,000) - 775,000 = -95,000

This company operates at a loss of $95,000, now lets see how would operating income be affected by the especial order of 3,000 bench seats:

OI = 23(3,000) - 785,000 = -716,000

Another loss, so the operating income would be affected with a los off $716,000 besides the $95,000 that the company losses operating with the regular order.

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liberstina [14]

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3 years ago

Delta Company produces a single product. The cost of producing and selling a single unit of the product at the company’snormal a

iogann1982 [59]

I assumed you typo 821 by $21 per unit, then the answer will be

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2- a minimum selling price for these units should be $14.00

Explanation:

Loss of $60,000 = 15,000 x (14,000 – (5.1+3.8+1+4.2+1.5+2.4))

a minimum selling price for these units is $14.00 per unit because it’s the price the company can earn if accept a special order, though lower than cost of producing and selling at $18.00

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3 years ago

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natka813 [3]

Answer:

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