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
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.

You might be interested in
The following merchandise transactions occurred during December for two different companies: Rippen
kondaur [170]

The accounting entries for Rippen Corporation is recorded as follows:

December 3,

DR Accounts Receivable (Burnen Corp.) $480,000

CR Sales $480,000

DR Cost of Goods Sold $320,000
CR Inventory $320,000

December 8,

DR Sales Return $30,000

CR Accounts Receivable $30,000

DR Inventory $20,000

CR Cost of Goods Sold $20,000

December 12,

DR Cash $441,000

DR Credit Discount $9,000

CR Accounts Receivable $450,000

<h3>What is Journal Entry?</h3>

A journal entry is recorded for the transactions of a company in the relevant period, the entry that is recorded is also known as the double entry. These journal entries are then used to prepare T-Accounts, an then trial balance is made and ultimately income statement and balance sheet are made.

The transaction includes a discount of 2% as credit discount for the payment being made within 10 days.

Learn more about Journal Entries at brainly.com/question/27076717

#SPJ1

5 0
1 year ago
A property owner installs a new air conditioning system. how does this affect the property's effective age?
Rama09 [41]

The effect that the newly installed air conditioning system would have on the property's effective age would be: it decreases it.

<h3>What is a Property's Effective Age?</h3>

The effective age of a property can be described as the reflection of the true life of the property that is left remaining, based on the life expectancy that is typical of equipment or buildings that are similar to it and their usage.

So, when a property owner installs a new air conditioning system on a property, the air conditioning system, can cause wear and tear to the property which reduces how long the property can serve its purpose.

Therefore, we can conclude that the effect that the newly installed air conditioning system would have on the property's effective age would be: it decreases it.

Learn more about a Property's Effective Age on:

brainly.com/question/16490794

#SPJ4

6 0
1 year ago
Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is
andrew11 [14]

Answer:

The correct answer is c) $9,000

Explanation:

If net credit sales are $300,000 and bad debt expense is estimated at 3% of net credit sales.

$300,000 x 3%= $9,000

or

$300,000 x 0.03= $9,000

The amount of the adjusting entry to record the estimated uncollectible accounts receivables is $9,000

7 0
3 years ago
Research shows that most managers have characteristics that fall into two or three decision-making styles, and that decision-mak
Alex787 [66]

Answer:

False

Explanation:

There are 3 main decision making styles that most of us have regarding our normal day to day activities that includes our work and our personal lives, e.g. families and individual decisions. They are consumer, business, and personal decision making styles.

But managers, and specially true leaders have it a little more complicated. The four main decision making styles that apply to leaders are:

  1. directive: type of autocratic leadership where the leader decides everything by himself/herself
  2. conceptual: look for different alternatives and analyze each one of them
  3. consultative: seek advice from colleagues and subordinates, but the leader makes the decision
  4. consensus: seek advice from others and decisions are made by the group

The second part of the question is true; this leadership styles vary across countries, occupations and job levels.

3 0
3 years ago
The plaintiff explains that she acted with the value of integrity when she started her own cleaning business. What did she claim
Anit [1.1K]

Answer:

Called the clients and cancelled jobs

Explanation:

If the plaintiff worked for the defendant and left to set up her own cleaning business, then she will most likely be bound by a non-compete clause.

So if she is saying she acted with the value of integrity, then she would called any of the defendant's clients and cancelled jobs in order to respect the non-compete clause.

However after sometime the non-compete clause is no longer binding.

3 0
3 years ago
Other questions:
  • Assume that sales are predicted to be $4,000, the expected contribution margin is $1,720, and a net loss of $280 is anticipated.
    13·1 answer
  • LO 4.2Which document lists the inventory that will be removed from the raw materials inventory?
    5·1 answer
  • N article published in the washington post claims that 45 percent of all americans have brown eyes. a random sample of n=78 coll
    15·1 answer
  • Bridgette is a managerial accountant at the Middle Peninsula Manufacturing Company.​ Recently, Bridgette received a Certified Ma
    7·1 answer
  • As consumers, we have to make decisions because ?
    5·1 answer
  • Which of the following considerations is related to sociocultural
    9·2 answers
  • Andrina always spends 30 % of her income on thingamabobs. Assume that her income increases by some percentage while the price of
    6·1 answer
  • Shelley wants to cash in her winning lottery ticket. She can either receive sixteen $100,000 semiannual payments starting today,
    7·2 answers
  • A college student purchased a car priced at $10,000. She paid $1,000 down and agreed to a monthly payment of $200 per month for
    15·1 answer
  • Diferencia entre organizacion, empresa y emprendimiento
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!