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2 years ago

Coronado Industries produces 1000 units of a necessary component with the following costs:

Business

1 answer:

Reika [66]2 years ago

3 0

Answer:

$40,000

Explanation:

Current Cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead

= $20,000 + $9,000 + $3,000 + $7,000

= $39,000

Given,

Increase in profit contribution = $8,000 (If acquired from outside )

No fixed cost overhead Costs Can be reduced, so only profit margin will be reduced

New contribution margin = Increase in profit contribution (-) Fixed Cost

= $8,000 (-) $7,000

= $1,000

Maximum external price that Ruth Company would be willing to accept to acquire the 1,000 units externally

= Current Cost + New contribution margin

= $39,000 + $1,000

= $40,000

Maximum external price = $40,000

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2 years ago

Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each of the next 20 years.

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Answer:

The amount to be paid for the contract today = $220,908.32

Explanation:

<em>The amount to be paid for the contract today will be equal to the present value of the annuity of $22,500 payable for 20 years discounted at a rate of 8% per annum.</em>

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The amount to be paid for the contract today = $220,908.32

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2 years ago

If Pratt Company issues 5,000 shares of $5 par value common stock for $210,000, the accounta. Common Stock will be credited for

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Answer:

d. Cash will be debited for $210,000.

Explanation:

The journal entry for the issue of shares is shown below:

Cash A/c Dr $210,000

To common stock (5,000 shares × $5) = $25,000

To Paid-in Capital in Excess of Par Value $185,000

(Being issue of shares recorded)

So, the cash account is debited whereas the common stock and paid-in capital should be credited

And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value

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2 years ago

The underground economy refers to used product sellers who sell in secondary markets. It is thought to make up ________ of the U

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The underground economy refers to used product sellers who sell in secondary markets. It is thought to make up 3-30% of the US gross national product.

Explanation:

Household production refers to goods and services people produce for themselves.

Underground economy refers to buying and selling of goods and services that are concealed from the government to avoid taxes or regulations or because the goods and services are illegal.

If you know how much the economy works for a brief time, it doesn't matter.

If one knows how goods and services are produced for a decade or further, it might be more important to omit domestic production and development in the underground economy.

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2 years ago

Dan's Independent Book Store is trying to decide on how many copies of a book to purchase at the start of the upcoming selling s

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Answer:

The answer is b as he should order 1045 copies to maximize his profits.

Explanation:

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