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Stella [2.4K]
2 years ago
11

Blake’s Manufacturing sells unfinished wood pieces for $150 each. The manager reported 280 defective wood pieces in inventory, w

hich cost $20 to refabricate. The manager can sell the defective pieces for $30 each, or process the wood further for $10 each, and then sell them for the standard sales price. What is the total incremental income from further processing?
Business
1 answer:
mixas84 [53]2 years ago
5 0

Answer:

$30,800

Explanation:

This can be calculated as follows:

Standard price revenue = $150 × 280 = $42,000

Original cost = $20 × 280 = $5,600

Defective sales revenue = $30 × 280 = $8,400

Extra processing cost = $10 × 280 = $2,800

Actual revenue forgo from defective sales = Defective sales revenue - Extra processing cost

Actual revenue forgo from defective sales = $8,400 - $2,800 = $5,600

Total incremental income = Standard price revenue - Original cost - Actual revenue forgo from defective sales

Total incremental income = $42,000 - $5,600 - $5,600 = $30,800

Therefore, the total incremental income from further processing is $30,800.

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Answer:

The correct answer is: inputs such as wages and salaries to its employees, whereas implicit costs are non-expenditure costs that occur through the use of self owned resources such as foregone income.

Explanation:

The implicit costs. Also known as opportunity costs have to do with alternative earning options, or money that we no longer receive when performing certain commercial actions.

A company incurs implicit costs when it waives an alternative action but does not make a payment. Implicit costs of a company are:

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Explicit costs.  They are what we usually see and are easy to identify. Even if they can present some complication for their determination, it is possible to identify them thanks to the business operation itself.

Explicit costs are paid with money. In a food company the costs recorded by the company accountant are the explicit costs, for which the company disburses cash, such as wages and salaries, truck maintenance, tolls, service payments, and so on.

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Michael works as a financial advisor in a doctor’s office. The two organizations that Michael most likely belongs to are the
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3 years ago
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Answer and Explanation:

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g Perfection purchased a 25% stake in Satisfactory for $486,000 on Jan 2, 2021. On Jan 1, 2021, Satisfactory had a book value of
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Answer:

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Explanation:

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25% of the net asset value of Satisfactory = $486,000 ($1,944,000 * 25%)

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