1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Talja [164]
2 years ago
10

Edison's Lights makes light bulbs. The company is currently producing well below its full capacity. Lamp Land has approached Edi

son's Lights with an offer to buy 20,000 light bulbs at $0.75 each. Edison;s Lights sells its light bulbs wholesale for $0.85 each; the average cost per unit is $0.83, of which $0.12 is fixed costs. If Edison's Lights were to accept Lamp Land's offer, what would be the increase in Edison's Lights' operating profits?
Business
1 answer:
Korvikt [17]2 years ago
5 0

Answer:

the increase in Edison's Lights' operating profits would be  $400

Explanation:

<u>Analysis of the effects of Accepting Lamp Land's offer</u>

Sales (20,000 x $0.75)                                   $15,000

Less Incremental Costs :

Variable Cost (20,000 x $0.73)                     ($14,600)

Operating Profit                                                    $400

thus

If Edison's Lights were to accept Lamp Land's offer, the increase in Edison's Lights' operating profits would be  $400

You might be interested in
Sunland Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is avail
Lady_Fox [76]

Answer:

Ending inventory cost= $10,900

COGS= $15,940

Explanation:

<u>To calculate the  ending inventory using LIFO (last-in, first-out) method, we need to use the cost of the lasts units incorporated into inventory:</u>

Ending inventory in units= 1,000 - 550= 450

Ending inventory cost= 340*23 + 110*28= $10,900

<u>Now, the cost of goods sold:</u>

COGS= 270*30 + 280*28= $15,940

8 0
3 years ago
Trent Co. reports the following information: Net cash provided by operating activities $430,000 Average current liabilities 300,
Akimi4 [234]

Answer:

$90,000

Explanation:

Data provided in the question:

Net cash provided by operating activities = $430,000

Average current liabilities = $300,000

Average long-term liabilities = $200,000

Dividends paid = $120,000

Capital expenditures = $220,000

Purchase of treasury stock = $22,000

Payments of debt = $70,000

Now,

Trent's Free cash flow

= Net cash provided by operating activities - Capital expenditures - Dividends paid

= $430,000 - $220,000 - $120,000

= $90,000

3 0
2 years ago
The following items and amounts were taken from Wildhorse Co.’s 2017 income statement and balance sheet.
puteri [66]

A. Assets

B. Equity

C. Expense

D. Liability

E. Assets

F. Assets

G. Assets

H. Equity

I. Liability

J. Liability

K. Revenue

L. Expense

6 0
3 years ago
Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding D
love history [14]

Answer:

The cost per equivalent unit of materials is $2.28

Explanation:

The Concept of Equivalent units measures the number of units complete to the extent of the input elements added during production.

The FIFO method in Process costing Accounts for Costs only incurred during the Manufacturing Period. Also, The Opening Work In Process is Assumed to be completed first.

<em>The First Step is to Calculate the Total Equivalent Units of Production for Raw Materials :</em>

To finish Opening Work In Process (34,000 × 0%)         =        0

Started and Completed ((153,000 - 34,000) × 100% )     =  119,000

Closing Work In Process (34,500 × 100%)                       =   34,500

Total Equivalent Units of Production                               =   153,500

<em>The Next and Final Step is to calculate the cost per equivalent unit of materials.</em>

Cost per equivalent unit = Total Cost During the Current Period / Total Equivalent Units of Production

                                           = $349,625 / 153,500

                                           = $2.2776872

                                           = $2.28 (2 decimal places)

Conclusion :

The cost per equivalent unit of materials is $2.28

7 0
3 years ago
FAS 13 sets forth four criteria for determining whether or not a lease must be classified as a capital lease. How many of these
storchak [24]

Answer:

xszxszxs

Explanation:

xsxzxszxsz

4 0
3 years ago
Other questions:
  • Which businesses make up the extractive industry
    14·1 answer
  • Which one of the following is not an ownership right of a stockholder in a corporation?
    13·1 answer
  • Resconic Inc. follows a formal structure that focuses on rules, policies, and authority. It also uses reward systems to keep its
    7·1 answer
  • Suppose you need $1 million dollars to start your dream business. Describe two ways you would generate the funds needed to start
    13·1 answer
  • Ryan wants to sell personal website services to American soldiers in Afghanistan. Because of the difficulty of communicating wit
    13·1 answer
  • Bob is a student at Fresno State University who recently got his first F. Now he has to make a decision about how to get his gra
    8·1 answer
  • A buyer properly revokes the offer after receiving the property condition disclosure and requests the return of the buyer's earn
    9·1 answer
  • Explain the importance of understanding how teams work together to achieve the same goal​
    7·1 answer
  • What impact does interest have on the cost of the purchases you make when
    13·1 answer
  • Debra notes that Theo Chocolate has started holding its own operations to the same IMO standards of fair trade to which it holds
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!