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
taurus [48]
2 years ago
9

Delta Screen Corporation is currently operating at 60% of capacity and producing 6,000 screens annually. The normal selling pric

e is $750 per screen. They recently received an offer from a company in Germany to purchase 2,000 screens for $500 per unit. Delta has not previously sold products in Germany. Budgeted production costs for 6,000 and 8,000 screens follow:Units Produced 6,000 8,000 Direct Materials Cost $ 750,000 $ 1,000,000Direct Labor Cost 750,000 1,000,000Variable Overhead 900,000 1,200,000 Fixed Overhead 1,200,000 1,200,00 Total Cost 3,600,000 4,400,000Full Cost per Unit 600 550Delta’s marketing manager believes that although the price offered by the German customer is lower than current price, the order should be accepted to gain a foothold in the German market. The production manager, however, believes that the order should be rejected because the unit cost is higher than the price offered.If the president of Delta were to call on you to resolve the difference in opinion, what would you recommend? Explain.What is the minimum price for the special order if Delta is operating at full capacity?
Business
1 answer:
garik1379 [7]2 years ago
6 0

Answer:

a. I would recommend the the special order should be accepted.

b. The minimum price for the special order is the current selling price of $750.

Explanation:

a. If the president of Delta were to call on you to resolve the difference in opinion, what would you recommend?

Because the existing data's format and findings are deceiving, I would suggest to the president to let us perform a differential analysis before making a recommendation.

Note: See the attached excel file for a analysis of accepting the order.

In the attached excel file, the following calculation is done:

Special order revenue = Difference revenue = Units of special order * Special order price per unit = 2,000 * $500 = $1,000,000

Revenue with the special order = Revenue without the special order + Special order revenue = $4,500,000 + $1,000,000 = $4,500,000

From the differential analysis in the attached excel, it can be observed that accepting the order will increase profit by $200,000.

Therefore, I would recommend the the special order should be accepted.

b. What is the minimum price for the special order if Delta is operating at full capacity?

Since other sales opportunities has be forgone if the special order is accepted if Delta is operating at full capacity, the minimum price for the special order must be or is the current selling price of $750.

Download xlsx
You might be interested in
CAAT Traders acquired machinery on 1 July 20.18 for an amount of R175 300. This machinery was only available for use from 1 Sept
Ilia_Sergeevich [38]

The depreciation expenses to be shown in the statement of profit or loss and other comprehensive income for the year ended (31-05-2019) is R26,295.

<h3>What is depreciation?</h3>

Depreciation can be defined as a process in which the monetary (financial) value of an asset decreases or falls over time, especially due to wear and tear.

<h3>How to determine the depreciation expenses?</h3>

First of all, we would calculate the expected number of units produced by CAAT as follows:

Expected number of units produced = 15,000 + 13,000 + 11,000 + 10,500 + 10,500

Expected number of units produced = 60,000.

Mathematically, the depreciation expenses is given by:

Depreciation expenses = Actual units produced/expected units produced × cost price

Substituting the given parameters into the formula, we have;

Depreciation expenses = 9,000/60,000 × 175,300

Depreciation expenses = R26,295.

Read more on depreciation expenses here: brainly.com/question/25806993

#SPJ1

7 0
2 years ago
Mester Company has 10 employees. FICA Social Security taxes are 6.2% of the first $117,000 paid to each employee, and FICA Medic
Aneli [31]

Answer:

\left[\begin{array}{CCCccc}&accumulated&OASDI&HI&SUTA&FUTA\\KEN&6000&360&90&324&36\\ANN&146500&7020&1755&378&42\\LORI&119500&7020&1755&378&42\\TIM&60200&3612&903&378&42\\KATHLEEN&106900&6414&1603.5&378&42\\KITTY&36900&2214&553.5&378&42\\STEVE&89000&5340&1335&378&42\\MICHELLE&117000&7020&1755&378&42\\JHON&4000&240&60&216&24\\\end{array}\right]

                  HI        OASDI SUTA FUTA TOTAL

Employer 9810 39240 3186 354         52590

Employee 9810 39240                   49050

TOTAL        19620 78480 3186 354         101640

Explanation:

We will compare the accumulated wages with the celling of each tax and apply the tax-rate oto the lower amount.

Then FUTA and SUTA will only be paid by the employeer.

Also, the employeer contributes the same amount for Hi and OASDI as the employees

5 0
3 years ago
​________ is the extent to which a selection tool produces consistent results over time.
shusha [124]
This answer would be reliability.
6 0
3 years ago
Jill buys a refrigerator and pays the company to have it delivered. While the contract covers both a good and a service, this tr
Dominik [7]

Answer:

Article 2 of the UCC(Uniform Commercial Code).

Explanation:

UCC is said to be an acronym which stands for the Uniform Commercial Code; this is seen also to govern many different forms of contract interactions. Article 2 in most cases are seen to cover common issues ranging from

i). Goods definition of i.e any tangible item that can be moved.

ii). Situations involving missing terms in a contract, such as a missing quantity, price etc.

iii) Contract modifications and lastly

iv). Exchanges of consideration for items of value.

Alot of research has shown in most cases that article 2 is a popularly cited provision in this body of statutes, since it governs contracts for the sale of goods between merchants or between a merchant and a non-merchant.

3 0
3 years ago
Weiss Lenscorp, a maker of camera lenses, provides a 3-year warranty against defects on all of its products. In fulfilling its w
GuDViN [60]

Answer:

warranty liablity account ending balance:  3,510,000

Explanation:

In total, we expect a warranty expense for 6% for each sale distributed among three years.

For the 32,000,000 million sales for 2019 we expect:

32,000,000 x 6% = 1,920,000 warranty expense.

                                   warranty liaiblity

                                   debit       credit

beginning                                3,370,000

expenditures          1,780,000

warranty expense  <u>                 1,920,000</u>

balance                                    3,510,000

6 0
3 years ago
Other questions:
  • U.s. currency is part of
    12·1 answer
  • Which of the following statements is true of the sources of competitive advantage?
    14·1 answer
  • Which of the following might help to solve a free-rider problem? Select all that apply:
    15·1 answer
  • Stark Company's most recent balance sheet reported total assets of $1.82 million, total liabilities of $0.84 million, and total
    5·1 answer
  • Colin wants to set up an aquarium.. He already has a tank, but needs to purchase fish, filters, and plants. If the cost of the f
    14·1 answer
  • Why do you think that forensic scientists continue to look for class characteristics given their limitations? crime and investig
    10·2 answers
  • What is the difference between a “Named Insured” and a “Driver”?
    5·1 answer
  • Culver Company is involved in four separate industries. The following information is available for each of the four industries.
    8·1 answer
  • The following information is available for Splish Brothers Corp. for the year ended December 31, 2022.Other revenues and gains 2
    11·1 answer
  • M and M, Inc. produces a product that has a variable cost of $4.20 per unit. The company's fixed costs are $45,600. The product
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!