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mariarad [96]
3 years ago
14

Eddy Company is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the un

assembled product is $60 and Eddy Company would sell it for $135. The cost to assemble the product is estimated at $27 per unit and Eddy Company believes the market would support a price of $174 on the assembled unit. What is the correct decision using the sell or process further decision rule?
a. Sell before assembly, the company will be better off by $27 per unit.
b. Sell before assembly, the company will be better off by $39 per unit.
c. Process further, the company will be better off by $39 per unit.
d. Process further, the company will be better off by $12 per unit.
Business
1 answer:
GREYUIT [131]3 years ago
3 0

Answer:

d. Process further, the company will be better off by $12 per unit.

Explanation:

In order to make the decision we first analyse the costs and profit per unit of each decision.

Profits from unassembled product is as,

Profit = 135 - 60 = $75 per unit

Profits from assembled product is as,

Profits = 174 - 60 - 27 = $87 per unit

The differential is a positive profit = 87 - 75 = $12/ unit after assembly.

So the company should process further as there is an additional $12 to be made per unit.

Hope that helps.

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<span>In calculating the bank discount when discounting an interest bearing note, the one that is not used in calculation is: D. Discount period

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A _____ is subsidiary to the work-in-process account and is the primary document for accumulating all costs related to a particu
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Answer:

correct option is b. job-order cost sheet

Explanation:

A job order cost sheet is subsidiary to work in process

because job-order cost sheet are the documents that is use for record the manufacture cost.

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and it is also accounting record of the company  

so here given that primary document for accumulate all cost related to a particular task

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8 0
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is a seller's obligation to replace or fix a product (or service) that fails to perform as expected within a specified period.
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Seller's obligation to replace or correct a product (or service) that fails to perform as expected within a specified period. To conform with the matching principle, the seller reports the expected warranty expense in the period when revenue from the sale is reported.

<h3>What are sales?</h3>
  • Sales are actions involving the sale of goods or the volume of items sold during a specified time frame.
  • A sale also includes the provision of a service for a fee.
  • In response to an acquisition, appropriation, request, or a direct connection with the customer at the point of sale, the seller or provider of the products or services completes a sale.
  • Title (property or ownership) of the object is transferred, and a price is settled, meaning a price is agreed upon for which the ownership of the item will transfer.
<h3>Why are sales important?</h3>
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8 0
2 years ago
A company issued 5%, 20-year bonds with a face amount of $60 million. The market yield for bonds of similar risk and maturity is
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Answer:

Total $53.0656 (millions)

Explanation:

We will need to add the present value of the coupon payment

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C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C= 60 million x 5% /2 1.5

time= 20 years 2 payment per year = 40

rate = 6% annual = 0.06/2 = 0.03 semiannually

1.5 \times \frac{1-(1+0.03)^{-40} }{0.03} = PV\\

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<u>present value of the bonds:</u>

\frac{Maturity}{(1 + rate)^{time} } = PV

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time 40

rate           0.03

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<u>The value of the bond will be the sum of both</u>

PV c $34.6722

PV m  $18.3934

Total $53.0656

7 0
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