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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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aleksandr82 [10.1K]

Answer:

1. Product

Explanation:

Perdue finding out that one of its chicken products may have been contaminated with bacteria, pulled it off the shelves and instituted a recall.

Hence, this potential ethical issue is associated with product marketing mix because Perdue was very much concerned about the quality level, safety and reliability of his chicken products. This simply means, Perdue is much more interested in producing and selling highly uncontaminated products to it's customers.

A product marketing mix is focused mainly on the products, reason Perdue pulled the chicken products off the shelves and instituted a recall.

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7 0
3 years ago
A company reported beginning inventory of 100 units at a per unit cost of $25. It had the following purchase and sales transacti
patriot [66]

Answer:

14-Jan

Dr Trade Receivable $1,125

Cr Sales

14-jan

Dr Cost of sales 625

Cr Inventory 625

9-Apr

Dr Inventory 375

Cr Trade Payable 375

2-Sep

Dr Trade Receivable $2,500

Cr Sales $2,500

2 sep

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Cr Inventory $1,375

Dec 31 No journal entry

Explanation:

Preparation to Records the month-end journal entries noted below, assuming the company uses a periodic inventory system

14-Jan

Dr Trade Receivable $1,125

Cr Sales (45*25)

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Cr Trade Payable 375

2-Sep

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Cr Sales (50*50) $2,500

2 Sep

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8 0
2 years ago
The three primary policy tools available to those officials in charge of our country's monetary policy are a reserve requirement
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Answer:

a. reserve requirements, the discount rate, and open-market operations.

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.

Additionally, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).

The three (3) primary policy tools available to the governmental officials in charge of our country's monetary policy are reserve requirements, the discount rate, and open-market operations.

3 0
3 years ago
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The Aztec civilization also had a school for a few select young women to become priestesses where they learned to weave and deco
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Answer:

True

Explanation:

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Answer:

i think the answer is $27,350

Explanation:

i hope it help

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