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Troyanec [42]
3 years ago
11

Elfalan 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 47,000 units per month is as follows:Per UnitDirect materials $ 46.10Direct labor $ 8.80Variable manufacturing overhead $ 1.80Fixed manufacturing overhead $ 18.70Variable selling & administrative expense $ 3.20Fixed selling & administrative expense $ 15.00The normal selling price of the product is $100.10 per unit.An order has been received from an overseas customer for 2,700 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 $1.90 less per unit on this order than on normal sales.Direct labor is a variable cost in this company.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 $83.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:A. $18,090B. ($27,540)C. $68,580D. ($43,000)
Business
1 answer:
kolezko [41]3 years ago
8 0

Answer:

Effect on income= $68,580 increase

Explanation:

<u>Because it is a special order, and there is unused capacity, we will not take into account the fixed costs. Only the variable ones.</u>

<u>First, we need to calculate the unitary cost:</u>

Unitary cost= 46.1 + 8.8 + 1.8 + 1.3

Unitary cost= $58

<u>Now, the effect on the income of accepting the offer:</u>

Effect on income= 2,700*(83.4 - 58)

Effect on income= $68,580 increase

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Suppose a ​-year, bond with annual coupons has a price of and a yield to maturity of . What is the​ bond's coupon​ rate? The cou
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Complete Question:

Suppose a five-year, $1000 bond with annual coupons has a price of $903.35 and a yield to maturity of 5.6%. What is the bond's coupon rate?

Answer:

3.396% Approximately

Explanation:

We can calculate the coupon interest by using the formula given in the attachment.

Now, here we have:

F is the Face value which is $1000

P is the price of the bond which in this case is $903.35

C is the Coupon interest

n are the number of years which is 5 years in this case

Yield to Maturity is 5.6%

By putting the values in the given equation we have:

5.6% = [C        +    ($1000 - $903.35)/5 years]  /  [($1000 + $903.35)/2]

5.6% =   [C        +    19.33]  /  [951.675]

0.056 * 951.675 = C        +    19.33

53.2938 = C + 19.33

C = 53.2938 - 19.33

C = $33.96 approximate estimate.

Now we will find the coupon rate by using the following formula:

Coupon Rate = Coupon Interest / Face Value

By putting values, we have:

Coupon Rate = $33.96 / $1000 = 3.396% Approximately.

Accurate Coupon interest can be calculated using excel. The above answer gives minor difference in decimal points.

6 0
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how can electricity, communication, and transportation facilities indicate the potential for industrial growth?​
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Req. A

We know,

The accounting equation is

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Therefore, total asset - total liabilities = total stockholders' equity

So, we can say that equity is the difference between the company's assets and liabilities. However, equity cannot be claimed before the liabilities. Therefore, the option "A" is the correct answer.

Req. B

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Beginning retained earnings (Last year)                $527

Add: Net Income (Current year)                                 176

Less: Dividend (Balancing)                                   <u>     </u><u>(83)</u>

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