Answer:
Profit from sale of special order of 4,000 units increase by $14000
Explanation:
given data
order = 4000 units
Sales = $ 190,000
Cost of Goods Sold = 45,000
Gross Margin = $45,000
Sales price per unit = $15
solution
as we know that Elkhorn has excess capacity
so sales of 4000 additional units would not affect current sales of 10,000 units
and by production of excess 4000 units fixed cost would not increase
so Variable cost per unit will be
Variable cost per unit = 
Variable cost per unit = $11.5
so
Profit per unit will be
Profit per unit = Sales price - Variable cost
Profit per unit = $15 - $11.5
Profit per unit = $3.5
so
Profit from sale of special order of 4,000 units increase as = 4000 × $3.5
Profit from sale of special order of 4,000 units increase by $14000
Answer:
The net present value (NPV) of this investment is C) $10,048
Explanation:
Net present value (NPV) is the value of the future cash flows over the entire life of an investment discounted to the present.
The firm invests $95,000 today that will yield $109,250 in one year. The interest rates of the investment are 4%. The net present value (NPV) of this investment:
NPV = $109,250/(1+4%) - $95,000 = $10,048
Answer:
B. The zero based budget requires managers to re-justify every planned expenditure every year.
Explanation:
A zero based budget is one that does not take into account historical data when it is considering the present year budget. Each departmental requirement is re-evaluated and a new amount is assigned as budget for the year.
However conventional budgets carryover the previous year's expenses as a base data point. This results in similar budgeting across years.
So the main difference between the two is that zero based budget requires managers to re-justify every planned expenditure every year.
Pretty sure your answer is
<span>B. Profit margin</span>
Answer: Option C
Explanation:
A. Achievement of organizational goals is the result for which the controlling process is initiated.
B. Taking corrective action is the second last step in controlling process.
C. Controlling process starts with the establishment of standards from which the actual performance will be compared.
D. Comparison is the second step in controlling process.
E. Identification will be done only after the comparison and detection of deficiencies in the process.
