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anzhelika [568]
3 years ago
6

At Bargain Electronics, it costs $29 per unit ($17 variable and $12 fixed) to make an MP3 player that normally sells for $53. A

foreign wholesaler offers to buy 4,510 units at $28 each. Bargain Electronics will incur special shipping costs of $4 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Business
1 answer:
algol133 years ago
8 0

Answer and Explanation:

The computation is shown below;

Particulars       Reject Order      Accept Order       Net Income

Revenues               $0                      $126,280        $126,280

                                                    (4,510 units × $28)

Variable manufacturing $0              $76,670          -$76,670

                                                  (4,510 units × $17)

Shipping                   $0                    $18,040            -$18,040

                                                  (4,510 units × $4)

Net Income              $0                    $31,570              $31,570

Hence, the net income is in positive value so the special order would be accepted

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Answer:

The answer is: Compensatory damages

Explanation:

Compensatory damages refers to money awarded to a plaintiff in a civil case (in this case Cooper's Brakes) to compensate for incurred losses (or injuries, etc. in other cases). The plaintiff has to prove that the losses he suffered were caused by negligence or unlawful conduct of the defendant (Byron's Service). The plaintiff has to be able to quantify (in monetary terms) the damages it suffered.

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Karen has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a great deal abo
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Answer:

The answer is letter C, Broker.

Explanation:

In order to know whether Karen's company is a broker. It would be best to define what "Broker" is.

In business, <em>"broker" is defined as a person or a company who acts as a mediator between a buyer and a seller. As an agent, the broker gets commission in every business transaction. He can also represents himself as the buyer or the seller. At this point, he also gets a certain commission. </em>In the situation above, Karen arranges the transaction between the growers and processors of cranberries. At this point, she is acting as a seller and a buyer. She does this on behalf of the other firms. Thus, the answer is letter C, Broker.

<u>Additional Information</u>

Sales Agent- a self-employed salesperson who usually works alone. He obtains orders for companies and receives commission on those orders.

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6 0
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From the following information, construct a simple income statement and a balance sheet:
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Answer and Explanation:

The Preparation of the simple income statement and a balance sheet is shown below:-

                                   Corporation X

                                  Income Statement

                                 for the Year Ended xxxx

Particulars                                        Amount

Sales                                                $1,000,000

Less: Cost of goods sold               $500,000

Gross profit                                      $500,000

Less: Other expenses                     $60,000

EBIT                                                  $440,000

Less: Interest                                   $70,000

EBT                                                   $370,000

Less: Income tax                              $100,000

Net income                                       $270,000

Number of shares outstanding       $80,000

Earning per share                             $3.375

(Net income ÷ Number of shares outstanding)

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                                  Income Statement

                                 for the Year Ended xxxx

Particulars                                        Amount

Assets

Cash                                                $70,000

Accounts Receivable                     $150,000

Inventory

Raw Material                                   $80,000

Finished Goods                              $250,000

Total Current Assets                      $550,000

Plant & Equipment                          $410,000

Total Assets                                    $960,000

Liabilities

Accounts Payable                          $160,000

Other Current Liabilities                 $60,000

Total Current Liabilities                  $220,000

Long term Debt                              $200,000

Equity                                              $540,000

Total Liabilities & Equity                 $960,000

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Answer:

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