Answer:
the minimum acceptable price of this special order is $410.
Explanation:
Minimum acceptable price for the special order is the price that gives a Incremental<em> contribution margin of zero</em> or <em>a price that covers all costs related to supporting the special offer</em>.
Since the company has <em>excess capacity</em>, ignore the fixed costs as these are irrelevant for this decision
Costs to Provide for the Special Offer : Minimum acceptable price
Direct materials $150
Direct labor $60
Manufacturing support $105
Marketing costs $95
Minimum acceptable price $410
Answer:D. All the above are included
Explanation:
All the above are plural terms which connotes partnership.
Answer:
b. $7,000
Explanation:
Statement of Cash-flow from Financing activities
Particulars Amount
Issue common Stock $110,000
Dividend paid -$3,000
Retirement of bonds payable -<u>$100,000</u>
Net cash flow from financing activities <u>$7,000 </u>
Answer:
cutting prices reduces gross margin that may be difficult to recover
Explanation:
This is the case because cutting prices reduces gross margin that may be difficult to recover. A company's gross margin is the sales revenue they retain after paying off all of the direct costs associated with producing the various goods it sells. This happens because customers get accustomed to the low prices and tend to hesitate and not buy the company's products when they are priced higher, thus making it very difficult to recover their previous gross margin.
All of the states participated
