The Cutting Department of Sheffield Company has the following production and cost data for July.

A factory can produce cars and trucks. If the price of cars increases, then the supply of trucks will _____. increase decrease s

algol [13]

It will definitely decrease.

Answer: Decrease.

6 0

3 years ago

If a special sales order is accepted for 3,000 sails at a price of $75 per unit, fixed costs remainunchanged, and there are no a

Paha777 [63]

Question Completion:

We assume that the variable manufacturing cost is $55 per unit.

Answer:

The change in operating income = $60,000

Explanation:

a) Data and Calculations:

Special order = 3,000 units

Price of special order = $75 per unit

Variable cost per unit (assumed) = $55

Fixed costs = unchanged

Variable marketing and administrative costs = unchanged

The change in operating income = $60,000 (($75 - $55) * 3,000)

b) Given the above scenario and the assumed variable cost per unit of $55, the change in operating income will be a total of $60,000, which adds to the normal business of the company.

6 0

3 years ago

Perdue Company purchased equipment on April 1 for $93,420. The equipment was expected to have a useful life of three years, or 7

k0ka [10]

Answer:

The depreciation cost per year is:

Year 1: $16,800

Year 2: $31,200

Year 3: $27,600

Year 4: $15,120

Explanation:

To calculate the depreciation cost for the equipment based on hours used, we must determine the cost per hour:

cost per hour = (purchase cost - salvage value) / expected useful life

cost per hour = ($93,420 - $2,700) / 7,560 hours = $90,720 / 7,560 hours = $12 per hour

The depreciation cost per year is:

Year 1: 1,400 hours x $12 per hour = $16,800

Year 2: 2,600 hours x $12 per hour = $31,200

Year 3: 2,300 hours x $12 per hour = $27,600

Year 4: 1,260 hours x $12 per hour = $15,120

3 0

4 years ago

A project requires a $28,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2

anastassius [24]

Answer:

$2,668.67

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-28,000

Cash flow in year 1 = $12,000

Cash flow in year 2 = $13,000

Cash flow in year 3 = $12,000

I = 10%

NPV = $2,668.67

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

7 0

3 years ago

Actual demand for a product for the past three months was Three months ago 400 units Two months ago 350 units Last month 325 uni

Scrat [10]

Answer: A. forecast is 358, B. forecast is 325, C.forecast is 420

Explanation:

A. Simple three Moving Average

N1 = 400

N2 = 350

N3 = 325

total Periods N =3

Simple Moving Average = (N1 + N2 + N3)/ N

Simple Moving Average = (400 + 350 +325)/ 3

Simple Moving Average = 1075/3 = 358.333 = 358 (rounded off)

using a simple moving average we can forecast the demand to be 358

B Simple three Moving Average

N1 = 350

N2 = 325

N3 = 300

total Periods N = 3

Simple Moving Average = (N1 + N2 + N3)/N

Simple Moving Average = (350 +325 +300)/3

Simple Moving Average = 975/3 = 325

using a simple moving average we can forecast the demand to be 325 this month

C. Exponential Smoothing

when using Exponential smoothing method to forecast demand, to calculate the demand forecast Exponential smoothing method

we take the most recent period's demand and multiply it by the smoothing factor and add most recent period's forecast multiplied by (1 - smoothing fact).

let D = most recent periods demand actual demand = 300

S = Smoothing factor = 0.20

F = most recent period's forecast = 450

Demand Forecast = (D × S) + (F × (1-S)

Demand Forecast = (300 × 0.2) + (450 × (1 - 0.20)

Demand Forecast = (300 × 0.2) + (450 × 0.80)

Demand Forecast = 60 + 360 = 420

using exponential smoothing the demand forecast is 420

4 0

3 years ago