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Katen [24]
3 years ago
8

Kava Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air condition

ers, is known as K65. Data concerning this product are given below:
Per Unit

Selling price $180
Direct materials $29
Direct labor $5
Variable manufacturing overhead $4
Fixed manufacturing overhead $21
Variable selling expense $2
Fixed selling and administrative expense $17

The above per unit data are based on annual production of 4,000 units of the component. Direct labor can be considered to be a variable cost. (Source: CMA, adapted) The company has received a special, one-time-only order for 500 units of component K65. There would be no variable selling expense on this special order, and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company wouldn't be affected by the order. Assuming that Kava has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit on the special order below which the company shouldn't go?

a. $180
b. $59
c. $78
d. $38
Business
1 answer:
weeeeeb [17]3 years ago
7 0

Answer:

D. $38

Explanation:

The minimum price at which the company should not go below is the price that covers both manufacturing and non manufacturing cost , to meet the special and one time order only.

The per unit cost of the special order will be computer

Unit cost of the special order

Direct materials

$29

Direct labor

$5

Variable manufacturing overhead

$4

Total cost

$38.

Therefore, the minimum price per unit on the special order below which the company shouldn't go is $38.

Note that we are not considering fixed costs because they are irrelevant ; meaning that they would be incurred whether or not the special order is accepted.

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Answer:

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Explanation:

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Why are only final goods and services included in the calculation of GDP?
zavuch27 [327]

Answer:

Only final goods and services are included in the calculation of GDP to avoid counting things multiple times.

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In the calculation of the GDP only final goods and services are included because the prices of the these already have the costs of all the things that were used to produce them. If we count the intermediate products and services that were used for the final output, we will be double counting which will give a result that is not a correct estimation.

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True or false 1 out of 12 jobs in the U.S. is agriculture related
Alina [70]

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I believe it's true

Explanation:

4 0
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Other things the same, if the interest rate falls, then a. firms will want to borrow more, which increases the quantity of loana
Svet_ta [14]

Answer: (a).

Annexure: <u>Since a part of the information was found missing in the question, a similar question has been provided as an attachment for reference. </u>

If the interest rate falls with other things remaining constant, a firm would like to raise more money via debt instruments.

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7 0
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Answer:

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Explanation:

Given that,

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