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zavuch27 [327]
3 years ago
14

E Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal

activity level of 54,000 units per month is as follows: Per Unit Direct materials $ 49.60 Direct labor $ 9.50 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 20.10 Variable selling & administrative expense $ 4.60 Fixed selling & administrative expense $ 22.00 The normal selling price of the product is $114.10 per unit. An order has been received from an overseas customer for 3,400 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.60 less per unit on this order than on normal sales. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $90.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:
Business
1 answer:
dolphi86 [110]3 years ago
4 0

Answer: $91120

Explanation:

The The monthly financial advantage (disadvantage) for the company will be calculated thus:

Incremental revenue = (3400 × $90.40) = $307360

Less: Incremental Cost

Direct material (3400 × $49.60) = $168640

Direct labor (3400 × $9.5) = $32300

Variable manufacturing overhead = (3400 × $2.5) = $8500

Variable selling & administrative expense = (3400 × $2) = $6800

Total incremental Cost = $216240

Therefore, the monthly financial advantage will be:

= $$307360 - $216240

= $91120

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A<u> "budget"</u> is a plan in which an individual balances available resources and expenses.


Budgeting is the essential way that you can take control of your accounts. Basically, a budget is a composed arrangement for how you will spend your cash. You can make a month to month or a yearly spending plan. The budget enables you to settle on money related choices early, which makes it less demanding to cover every one of your costs consistently. Budgeting reliably can enable you to turn your accounts around and start to fabricate riches.

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3 years ago
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Reviewing the Budget
vekshin1

Answer:

For each month we calculate the variance by finding the difference between the Actual numbers and Budget numbers.

Then we indicate if the practice was "Overbudget" or "Underbudget".

If the actual numbers are less than the budget numbers, the budget is we say that the budget is under budget.

If the actual numbers are more than the budget numbers, the budget is we say that the budget is over budget.

Month    Budget   Actual               Variance        Under/ over  

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January  23,55,872   17,90,929      -5,64,943      Under Budget

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4 0
3 years ago
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A publicist's compensation package includes the total cost of a $180-per-
natima [27]

Answer:

D. $44,580

Explanation:

Here we want to find the yearly value of the compensation package.

To order to do so, we have to add the various terms. We have:

t_1=\$42,000 salary per year

Then we have the total cost of a $180-per- month health insurance plan; since there are 12 months in a year, it is

t_2=12\cdot \$180 =\$2160 per year

Then we have the total cost of a $35-per-month life insurance, so the yearly cost is

t_3=12\cdot \$35 =\$420

Therefore, the total compensation package is

T=t_1+t_2+t_3=42000+2160+420=\$44,580

So, option D.

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3 years ago
A food warehouse store got a very good buy on a brand of frozen orange juice and, rather than maintain it as extra inventory, pr
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Answer:

(d) Sales promotion

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Sales promotion is one level or kind of showcasing pointed either at the buyer or at the dissemination channel.  

It is utilized to present new item, get out inventories, pull in rush hour gridlock, and to lift deals incidentally.  

It incorporate challenges, coupons, complimentary gifts, misfortune pioneers, purpose of procurement shows, premiums, prizes, item tests, and discounts. Deals advancements can be aimed at either the client, deals staff, or dissemination channel individuals

4 0
3 years ago
10,400 units in April, 13,000 unit in May, and 16,100 units in June. The company maintains an ending finished goods inventory eq
Vesna [10]

Answer:

13,620 units

Explanation:

The computation of the no of units produced is shown below;

Given that

Budgeted sales in May = 13,000 units

Budgeted sales in June = 16,100 units

Ending finished goods inventory is

= 20% of budgeted sales in units for the next month.

= Budgeted sales in June × 20%

= 16,100 × 20%

= 3,220 units

Now

Ending finished goods inventory for April is

= Budgeted sales in May × 20%

= 13,000 × 20%

= 2,600 units

 

Now Budgeted production in May is

= Budgeted sales in May + Ending finished goods inventory - Beginning finished goods inventory

= 13,000 + 3,220 - 2,600

= 13,620 units

6 0
2 years ago
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