1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jeka57 [31]
3 years ago
15

The Metal Shop produces 1.7 million metal fasteners a year for industrial use. At this level of production, its total fixed cost

s are $486,000 and its total costs are $791,000. The firm can increase its production by 5 percent, without increasing either its total fixed costs or its variable costs per unit. A customer has made a one-time offer for an additional 50,000 units at a price per unit of $.165. Should the firm sell the additional units at the offered price? Why or why not?
Business
1 answer:
DiKsa [7]3 years ago
7 0

Answer: The offer should be rejected.

Explanation:

Given the following :

Total units produced = 1,700,000 units

Total cost = $791,000

Total fixed cost = $486,000

5% increase in production = (0.05 × 1,700,000) = 85,000

Units required by customer = 50,000 ( it is still within range without incurring additional fixed and variable cost).

Hence, total variable cost :

Total cost - total fixed cost

$(791,000 - 486,000) = $305,000

Variable cost per unit :

Total variable cost / total units produced

$305,000 / 1,700,000

= $0.179

Variable cost = marginal cost (Since variable cost per unit will be unchanged).

Offered price = $0.165

$0.165 < $0.179

Since offered price < marginal cost ; The offer should be rejected.

You might be interested in
Which of the following statements is true? A. Expenses are decreased by debits. B. Liabilities are decreased by credits. C. Reve
diamong [38]

Answer: Option C

Explanation:

A. As per the general principles of accounting expenses are recorded on the debit side thus they are increases when debit transaction is made.

B. Transactions involving liabilities are recorded on credit side of the accounts.

C. Revenues are recorded on credit side of the transactions thus revenues increased when accounts are credited.

D. Transactions involving purchase of assets are recorded on debit side thus debit transactions increases debits.

8 0
3 years ago
Jake accepted a management trainee position at Opelika Resorts, a real estate development company. Corporate management believes
GarryVolchara [31]

Answer:

A. job rotation

Explanation:

Job rotation is when an employee is moved from one job role to another with the intent of making the employee familiar with all the units in the organisation.

3 0
2 years ago
How often should a system demo occur?
Elden [556K]

A system demo should occur After every iteration .

<h3>When should a system demo occur?</h3>

A system demo shows the new features that the system has, as a result of the iteration that it was just put through. This is very helpful in knowing the features that you can use to make the system perform in such a way that your work will be done well.

It is therefore best that a system demo is done after every iteration has been done. This ensures that the system's features will be seen and used effectively.

Find out more on system demo at brainly.com/question/14264947

#SPJ1

6 0
10 months ago
The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except
garik1379 [7]

Answer:

A Schedule Summarizing Operating, Investing, and Financing Cash Flows, using the T-account approach:

                              Operating        Investing         Financing

                         Debit  Credit     Debit    Credit    Debit   Credit

1. Equipment                                          $71,000

2. Note Payable                                                              $13,500

3. Common Stock                                              $20,000

4. Cash Dividends                                                         $22,800

5. Accounts Payable          $2,700

6. Income Tax Expense    $4,000

7. Interest Expense                                                        $3,000

8. Net Income        $53,720

9. Depreciation      $21,280

10. Tax & Interest    $7,000

11. Accts receivable               $13,500

12. Inventory                           $6,750

13. Salaries Payable   $1,350

Total inflows/

outflows                 $83,350 ($26,950)  ($71,000) $20,000 ($39,300)

Net cash from              $56,400              ($71,000)     ($19,300)

Operating activities       $56,400

Investment activities     ($71,000)

Financing activities       ($19,300)

Net cash flows             ($33,900)

Explanation:

a) Data and Calculations:

1.                                                           Current Year   Prior Year

Balance Sheet

Assets

Cash                                                    $ 78,900     $ 99,300

Accounts Receivable                           108,000        94,500

Merchandise Inventory                         81,000        87,750

Property and Equipment                   152,000        81,000

Less:

Accumulated Depreciation             (43,280)     (22,000)

Total Assets                                   $ 376,620  $ 340,550

Liabilities:

Accounts Payable                           $ 13,500     $ 16,200

Salaries and Wages Payable            2,700           1,350

Notes Payable, Long-Term              67,500         81,000

Stockholders’ Equity:

Common Stock                               128,000       108,000

Retained Earnings                          164,920       134,000

Total Liabilities &

Stockholders’ Equity $ 376,620   $ 340,550

2. Current Year  Income Statement

:

Sales                         $ 340,000

Cost of Goods Sold     180,000

Depreciation Expense  21,280

Other Expenses           85,000

Net income               $ 53,720

3. The Wickersham Brothers Inc.'s Statement of Cash Flows is one of the three main financial statements that the management of Wickersham Brothers Inc. must prepare and present to the stockholders of the company and the general public.  It details the Wickersham's cash flows under the operating activities, investing activities, and financing activities sections.

4 0
3 years ago
Assume the following information for Kingbird Corp. Accounts receivable (beginning balance) $139,000 Allowance for doubtful acco
dezoksy [38]

Answer:

Prepare journal entries of sales, collections, write offs of accounts receivable, and reverse entries:

Date        Account details and explanations      Debit          Credit

                 Accounts receivable                          944,000  

                sales revenue                                                        944,000

                 Allowance for doubtful accounts      5300

                Accounts receivable                                                    5300

                Accounts receivable                            1800

                 Allowance for doubtful accounts                                1800

                cash                                                        1800

                 Accounts receivable                                                    1800

Calculating the ending balance of accounts receivable and unadjusted ending balance of allowance for doubtful accounts:

                  particulars                                                             Amount ($)

                 beginning balance of accounts receivable           139,000

                 Add: Net credit sales                                               944,000

                 less :  Collections                                                     908,000

                 Write-offs                                                                       5,300

                  Add: Reinstated amount                                              1800

                 less:  Collections                                                            1800

                  Ending  balance of accounts receivable                169700

                   particulars                                                             Amount ($)

                 beginning balance of doubtful accounts               11,370

                 less :  Write-offs                                                        5300

                 Add: Reinstated amount                                           1800

                 Ending  balance of unadjusted  balance                 7870

                 allowance of  doubtful accounts

Preparing journal entry to record bad debt

Date    Account details and explanations         Debit          Credit

           Bad debt expense ( 169700*8%) - 7870  12789

               allowance of  doubtful accounts                            12789

7 0
3 years ago
Other questions:
  • John is creating a presentation on the consumer price index, for his business class. He wants students to understand that food a
    5·1 answer
  • What attorney represents you if are not offered a job because you’re pregnant
    5·1 answer
  • A partnership set up for a specific purpose for a short period of time is known as a joint stock company. acting board of direc
    10·2 answers
  • What is the difference between factor payments and profits
    13·1 answer
  • In a fixed exchange rate system, how do countries address the problem of currency market pressures that threaten to lower or rai
    11·1 answer
  • Call centers offering technical support for American products have been moved to India to take advantage of lower labor costs. T
    12·1 answer
  • Your company is trying to decide which one of two projects it should accept. Both projects have the same start-up costs. Project
    9·1 answer
  • Every good speaker adapts to the audience. When adapting presentations for intercultural audiences, most people understand that
    7·1 answer
  • Sheffield Inc. took a physical inventory at the end of the year and determined that $845000 of goods were on hand. In addition,
    12·1 answer
  • Hanson, Inc. requires its marketing managers to submit estimated cost-volume-profit data on all requests for new products, or ex
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!