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Aleksandr-060686 [28]
3 years ago
12

Dallas Boot Corporation has been asked to submit a bid on supplying 1,000 pairs of military combat boots to the Armed Forces Tra

ining Center. The company's costs per pair of boots are as follows:
Direct material $8
Direct labor 6
Variable overhead 3
Variable selling cost (commission) 3
Fixed overhead (allocated) 2
Fixed selling and administrative cost 1

Assuming that there would be no commission on this potential sale, the lowest price the firm can bid is some price greater than:_________
Business
1 answer:
Kipish [7]3 years ago
7 0

Answer:

Dallas Boot Corporation

Assuming that there would be no commission on this potential sale, the lowest price the firm can bid is some price greater than:_________

= $20.

Explanation:

a) Data and Calculations:

Pairs of military combat boots on the bid = 1,000

Direct material                                     $8

Direct labor                                            6

Variable overhead                                3

Variable selling cost (commission)      3

Fixed overhead (allocated)                  2

Fixed selling and administrative cost  1

Total cost of production and sales $23

Less commission                                 3

Total cost per boot                         $20

b) The bidding price less sales commission will be a price that is greater than $20 per boot.  The extra amount per boot will cover the profit expected from the transaction.

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A company expects to pay a dividend of $3.50 per share one year from today. the dividend is expected to grow at 30 percent per y
monitta

Answer: $70

Explanation:

Price = Present value of year 1 dividend + Present value of year 2 dividend + Present value of year 3 dividend + Present value of year 4 dividend + Present value of year 4 price

Year 4 price = Year 4 dividend / ( Required return - Growth rate after 3 years)

= (3.50 * 1.30³ * 1.04) / (13% - 4%)

= $88.856

Price = (3.50 / (1 + 13%)) + ( (3.50 * 1.3) / 1.13²) + ( (3.50 * 1.3²) / 1.13³) + ( (3.50 * 1.3³) / 1.13⁴) + 88.856/1.13⁴

= $69.97

= $70

7 0
3 years ago
When making a major purchase, first determine your ______ income by subtracting the deductions from your gross pay.
Bingel [31]

Answer:

When making a major purchase, first determine your  <u>net </u> income by subtracting the deductions from your gross pay.

Explanation:

In business and accounting, net income is an entity's income minus cost of goods sold, expenses and taxes for an accounting period.

6 0
3 years ago
Read 2 more answers
On June 3, Swifty Company sold to Chester Company merchandise having a sale price of $3,300 with terms of 2/10, n/60, f.o.b. shi
goldfiish [28.3K]

Answer:

The Journal Entry and their narrations is shown below:-

Explanation:

The Journal entry is shown below:-

a. 1.Accounts Receivable Dr, $3,300

                   To Sales  $3,300

(Being sales is recorded)

Cash Dr, $3,234

Sales Discount Dr,  $66

(3,300 × 2%)

            To Accounts Receivable $3,300

(Being Payment received is recorded)

2. Accounts Receivable Dr, $3,234

=(3,300 × 0.98)

            To Sales $3,234

(Being sales is recorded)

Cash Dr, $3,234    

        To Accounts Receivable $3,234  

(Being payment received is recorded)

b. Cash Dr, $3,300  

       To Accounts Receivable $3,234  

        To Sales Discounts Forfeited 66

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4 0
2 years ago
Before the provision for Federal income tax, Karas Corporation had book income of $400,000 for the current year. The book income
Margaret [11]

Answer:

correct option is c. $350,000

Explanation:

given data

book income = $400,000

dividends = $100,000

owned domestic corporation = 15%

to find out

Karas Corporation's taxable income for the current year

solution

we know here that Karas Corporation qualifies report  that dividends received deduction = 50 % of dividends from the taxable unaffiliated domestic corporation

so we here assumed that if paying corporation is unaffiliated

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so book net income before federal income tax = $400,000

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put here value

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Taxable income =  $350,000

so correct option is c. $350,000

6 0
3 years ago
One of the largest changes in the economy over the past several decades is that technological advances have reduced the cost of
umka21 [38]

Explanation:

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computer price down -> equilibrium price down

computer price down -> equilibrium quantity up

computer price down -> consumer surplus up

The producer surplus increases due to increase in quantity and at the same time producer surplus decreases due to decrease in price.

computer price down ->  producer surplus down

computer quantity up -> producer surplus up

8 0
3 years ago
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