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jok3333 [9.3K]
3 years ago
7

Baker Company, an Ohio company that sells a branded product regionally to retail customers in Midwest. It normally sells its pro

duct for $40 per unit; however, it has received a one-time offer from a private-brand company on the West Coast to buy 1,000 units at $25 per unit. Even though the company has excess capacity to produce the units, the president of the company immediately rejected the offer; however, the chief accountant stated that it might be a profitable opportunity for the company, even though $25 is below its unit cost of $28, calculated as follows:
Cost
Direct material $12.00
Direct labor      8.00
Depreciation and other fixed costs      6.00
Total unit cost $26.00

Calculate the net advantage (disadvantage) of accepting the special order:

a. $5,000
b. ($5,000)
c. $25,000
d. ($25,000)
Business
1 answer:
Artist 52 [7]3 years ago
6 0

Answer:

Effect on income= $5,000 increase

Explanation:

Giving the following information:

One-time offer:

1,000 units at $25 per unit.

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

Unitary cost= 12 + 8= $20

Effect on income= 1,000*(25 - 20)

Effect on income= $5,000 increase

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Test Marketing E

Explanation:

Its not development or concept testing and pretesting would be like a survey and product launch it hasn't fulled launched yet so its test marketing to see if its good enough to launch in US its also selective stores E

5 0
3 years ago
The calculation of GDP does NOT include the value of:________1. Michelin tires purchased by Canadian car collectors. 2. Goodyear
ExtremeBDS [4]

Answer:

3. Bridgestone tires purchased by Ford Motor Co.

Explanation:

GDP refers to the total value of all the goods and services produced in a country. Calculation of GDP involves adding up all the values of finished goods and services and multiplying them by their prices.  For accuracy purposes, and to avoid double-counting, economists consider finished consumable products only.

When capital goods are included in GDP, they are likely to be counted again in the final product. The tires purchased by the car collectors, secret services, and at the garage are for consumption. The customers will use them as the end products. Tires purchased by Ford motors will be used in the production of motor vehicles. They are capital goods or goods used in manufacturing other goods. They are not included in GDP calculation.

5 0
3 years ago
Over the period of 1926 to 2017, small-company stocks had an average return of ________ percent. Group of answer choices
blagie [28]

Answer:

12.1%

Explanation:

Over the period of 1926 to 2017, small-company stocks had an average return of ___12.1%_____ percent. 12.1% was the highest rate of small stock during the period of 1926 to 2017.

3 0
3 years ago
On December 1, Year 4, Tigg Mortgage Co. gave Pod Corp. a $200,000, 12% loan. Pod received proceeds of $194,000 after the deduct
Charra [1.4K]

Answer:

The accrued interest receivable is $2000

Explanation:

Accrued interest receivable refers to interest earned by a company but has not received in cash. This happens when the cash to be paid as interest falls outside an accounting period. Accrued interest receivable is an asset account on the investor's books and a current liability on the issuer's books.

Since the accrued interest is to be between December 1 and December 31, the time period is 1 month = 1/12 years.

loan percent = 12% = 0.12

loan amount = $200000

The accrued interest receivable = Time period × loan percent × loan amount = (1/12) × 0.12 × 200000 = $2000

The accrued interest receivable is $2000

4 0
3 years ago
Balanced Scorecard for a service companyAmerican Express Company is a major financial services company, noted for its American E
jeka94

Answer:

Balanced Scorecard is a good measure for company's performance.

A list of measures is given against which American Express Company's performance can be measured which will benefit the company in improving their services and discarding if any service is not being benefited by their customers.

Each Key performance indicator needs to have a good measure of performance, so that the performance can be calculated easily.

Explanation:

Balanced Scorecard is a good measure for company's performance.

A list of measures is given against which American Express Company's performance can be measured which will benefit the company in improving their services and discarding if any service is not being benefited by their customers.

Each Key performance indicator needs to have a good measure of performance, so that the performance can be calculated easily.

6 0
3 years ago
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