1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
horsena [70]
3 years ago
15

A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,

000 defective units that cost $5.40 per unit to manufacture. The units can be a) sold as is for $3.50 each, or b) reworked for $4.60 each and then sold for the full price of $8.90 each. What is the incremental income from selling the units as scrap and reworking and selling the units
Business
1 answer:
ANTONII [103]3 years ago
5 0

Answer:

Incremental income as scrap=$66,500

Incremental income when re-worked= $81,700

Explanation:

Unit contribution from selling as scrap is the equal to the scrap value = 3.50

Unit contribution when reworked and sold as scrap =Selling price - cost of re-work= $8.90-4.60= $4.3

Incremental income as scrap = $3.50×19,000= $66,500

Incremental income when re-worked= $4.3 × 19,000 = $81,700

Incremental income as scrap=$66,500

Incremental income when re-worked= $81,700

You might be interested in
A high degree of _______ means you can accurately assess your own strengths and limitations and have a healthy sense of self-con
Alex_Xolod [135]
I think the correct answer would be <span>self-awareness. If you really know yourself well, you can easily tell if something is out of your limits or boundary. You can easily pinpoint which one is right or bad for you. Hope this answers the question.</span>
4 0
3 years ago
A buyer with a 15-year, $250,000 loan at a 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. W
lorasvet [3.4K]

<u>Given:</u>

Loan amount = $250000

Interest rate = 5.5%

Interest payment = $2042.71

<u>To find:</u>

Total amount of interest

<u>Solution:</u>

The total number of months in 15 years = 15\times12=180\text{ years }

Total monthly payments will be 180\times \$2042.71 = \$367687.8

So, the total pay-backs will be $3,67,687.8

Total interest paid will be as follows,

\text{Total interest paid = Total pay-backs - Loan amount}

On plugging-in the values in the above formula we get,

\Rightarrow \$3,67,687.8-\$250,000=\$1,17,687.80

Therefore, the total amount of interest that the borrower will pay over the course of the loan is $1,17,687.80.

8 0
3 years ago
Sunland Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $31
Alinara [238K]

Answer: $15,500

Explanation:

First we calculate the estimated Uncollecteble debt,

= 6% of 310,000

= 0.06 (310,000)

= $18,600

We will then subtract the existing $3,100 to find out how much we will send to the Bad Debt Expense account because the amount already in the account needs to be included in the $18,600.

= 18,600 - 3,100

= $15,500

We will therefore Debit the Bad Debt Expense account with $15,500 and Credit the Allowance for Doubtful Accounts with the same amount.

If you need any clarification do react or comment.

5 0
3 years ago
Read 2 more answers
Question 1 of 10
Montano1993 [528]

Answer:

it's most likely B or D. but you need to double check

3 0
2 years ago
Ginny and Eric are partners at an architecture firm. They are trying to determine which of them has a comparative advantage in b
blondinia [14]

Answer: (i) $20 per model

(ii) $27 per model

(iii) Ginny has a comparative advantage in building models.

Explanation:

A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

Therefore,

Ginny's Opportunity cost of producing one model = \frac{400}{20}

                                                                                      = $20 per model

Eric’s opportunity cost of building models = $20 + 35% of $20

                                                                      = $20 + $7

                                                                      = $27 per model

Hence, Ginny has a comparative advantage in building models because Ginny's opportunity cost of building model is lower than Eric's opportunity cost.

5 0
3 years ago
Other questions:
  • The following transactions apply to Jova Company for Year 1, the first year of operation:
    6·1 answer
  • John's car is hit by ben's truck. a doctor tells john that he will be disabled only temporarily. ben's insurance company offers
    7·1 answer
  • On 3/1/14 Fox Corp bought back 1,000 shares of their common stock for $15 per share. There were no shares in the treasury prior
    8·1 answer
  • B. the product of abcgolf uses several exotic raw materials. the government places a tax on those raw materials, and the mc and
    5·1 answer
  • At the time when products and services are produced or provided to customers, which functional area is responsible for ensuring
    8·1 answer
  • Sheridan Company, a computer services company, entered into these transactions during May 2017, its first month of operations.
    5·1 answer
  • Sam is getting his bachelor's degree. During some of his course work, he honed his research skills and learned to
    13·2 answers
  • Which tool(s) of monetary policy would the Federal Reserve use if it wanted to increase the money supply?
    14·1 answer
  • If a company selects either of Project 1 or Project 2 (or both), then either Project 3 or Project 4 (or both) must also be selec
    11·1 answer
  • Suppose stocks offer an expected rate of returns of 10% with a standard deviation of 20%, and gold offers an expected return of
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!