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Lerok [7]
3 years ago
11

Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar

to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $140 Direct labor 100 Manufacturing support 105 Marketing costs 55 Fixed costs: Manufacturing support 175 Marketing costs 65 Total costs 640 Markup (50%) 320 Targeted selling price $960 For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order
Business
1 answer:
Kruka [31]3 years ago
7 0

Answer:

$400

Explanation:

Calculation to determine the minimum acceptable price of this special order

Using this formula

Minimum acceptable price=Direct materials+ Direct labor+ Manufacturing support +Marketing costs

Let plug in the formula

Minimum acceptable price=$140 + $100 + $105 + $55

Minimum acceptable price=$400

Therefore the minimum acceptable price of this special order is $400

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Critically analyze the difference and points of convergence between floor inspection and functional inspection
r-ruslan [8.4K]

Answer:

Please refer to the below;

Explanation:

Difference between Floor inspection and Functional inspection.

• Floor inspection is usually conducted in a production environment. It involves checking of materials while processing in the machine by inspectors. Rather than checking the materials in the machine at the beginning of production, floor inspection checks the materials while in process inorder to ensure that the defected ones are quickly detected and expunged. It also ensure that the equipments used in processing are properly functioning.

• Functional inspection is an inspection that checks the overall function of a product rather than what makes up the component parts. For instance the load capacity and speed of a vehicle can be checked for optimal performance whereas individual parts that make up the vehicle are not checked, yet bring out satisfactory performance when combined together. This form of inspection is concerned with verification of final output and does not provide details about different sections instead provides a wider understanding of comfort that emanate from inspecting same item.

Points of Convergence between Floor inspection and Functional inspection.

• The key objective of both floor and functional inspection is quality output having reviewed and examined their expectations.

• Both floor and functional inspection work to prevent defective product from flowing down the successive operations and avoid loss to the company

• Both floor and functional inspection aim at meeting customers requirements, wants and needs.

4 0
3 years ago
Should Tangshan Mining company accept a new project if its maximum payback is 3.5 years and its initial after tax cost is​ $5,00
Firlakuza [10]

Answer:

Yes, Tangshan Mining company should accept the project.

Explanation:

Payback period is the number of years it takes for a project's expected cash inflows to recover the initial investment amount.

Tangshan company's required payback period = 3.5 years

<u>Year             CF                       Net CF</u>

0             -5,000,000        -5,000,000

1               1,800,000          -3,200,000

2              1,900,000          -1,300,000

3                700,000           -600,000

4               1,800,000            1,200,000

<em>Payback period = last year with -net CF +(absolute net CF that year /total CF the following year)</em>

Payback period = 3 + (600,000 / 1,800,000)

=3 + 0.33

= 3.33 years

Since 3.33 years is lower than the required payback period of 3.5 years, Tangshan Mining company should ACCEPT the new project; it will take less years to fully recover the initial amount investment.

5 0
3 years ago
Which of the below individuals has the best capacity to pay back a loan?
insens350 [35]

Answer:

D. John

Explanation:

John has an annual income of $100,000 which is equivalent to a monthly salary of $ 8,334.00 ($100,000 divide by 12 months)

Applying the 28/36 borrowing rule, Mr. John cannot exceed 36 percent of his monthly income to service debts. It means that John has $ 3000 available every month to service his loans.

John intends to take a loan of $ 10,000. This amount is within his ability to pay. Even if he has other debts, he only needs months to clear the loan plus interest.

If we apply the same rule to Paul, his monthly salary is $2, 084.00. He has $ 750.00 available to pay the loan every month. A loan of $ 50,000 with interest will take about seven years to clear. Considering he may want to take other loans in that period and the value of the car by then, Paul is likely to default.

Eileen will have  $720 available for repayments per month and annually $ 8640.00 to repay $400,000.00; she will need about 47 years. Considering her age, it's not viable.

3 0
3 years ago
If the direction in managerial work today is away from command and control, what is it toward?(a) Coaching and facilitating (b)
vagabundo [1.1K]

Answer:

(a) Coaching and facilitation

Explanation:

Coaching refers to polishing the skills of the employees by imparting knowledge and adequate training so that they are able to contribute efficiently as well as perform to their potential.

Facilitation refers to easing out the processes or making complex tasks easier. Facilitation refers to the act of simplifying a task.

Command and control tend to be imperative, domineering and authoritative.  Those two terms also point towards rigidity and inflexibility.

Thus, shift in managerial work from command and control has been towards (a) Coaching and facilitation.

6 0
3 years ago
Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for
Sidana [21]

Answer:

Variable cost per unit= $6.5 per unit

Fixed costs= $3,750

Explanation:

Giving the following information:

Month - Number of Appointments - Total Cost

January: 375 $5,050

February: 350 $5,500

March: 200 $5,200

April: 500 $7,000

May: 400 $5,650

June: 300 $5,200

To calculate the variable and fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (7,000 - 5,050) / (500 - 200)= $6.5 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 7,000 - (6.5*500)= $3,750

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 5,050 - (6.5*200)= $3,750

3 0
3 years ago
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