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Anna007 [38]
3 years ago
9

Perez Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Pe

rez’s normal sales territory, asks Perez to pour 51 slabs for Lancing’s new development of homes. Perez has the capacity to build 460 slabs and is presently working on 160 of them. Lancing is willing to pay only $2,550 per slab. Perez estimates the cost of a typical job to include unit-level materials, $870; unit-level labor, $500; and an allocated portion of facility-level overhead, $1,250.
Calculate the contribution to profit from the special order. Should Rooney accept or reject the special order to pour 47 slabs for $2,510 each?
Business
1 answer:
cricket20 [7]3 years ago
4 0

Answer: Rooney should accept as there is a chance to make a profit of $53,580

Explanation:

Rooney has the capacity to build the additional slabs so can do so without stopping other orders.

Revenue should Rooney accept project:

= 47 * 2,510

= $117,970

Cost should Rooney accept project:

= (870 * 47) + (500 * 47)

= $64,390

Total profit:

= 117,970 - 64,390

= $53,580

<em>Rooney should accept as there is a chance to make a profit of $53,580</em>

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Answer and Explanation:

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5 0
3 years ago
(Pension Expense, Journal Entries, Amortization of Loss) Gottschalk Company sponsors a defined benefit plan for its 100 employee
Alika [10]

Answer: See attachment and explanation.

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Less: Actual return on plan asset = ($11000)

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Ammortization of prior service cost = $15000

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b. The journal entry to record the pension expense and the company’s funding of the pension plan in 2017 has been attached.

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Elmer’s utility function is U(x, y) = min{x, y2}. If the price of x is $25 and the price of y is $15 and if Elmer chooses to con
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Answer:

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Explanation:

The computation of the income is shown below;

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U(x, y) = min{x, y2}

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ANd, the prcie of Y is $15

So,

25X + 15Y = M

if Y = 7,

So,  

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Then ,

M = 25 × 49 + 15 × 7

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