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Ratling [72]
3 years ago
15

Sunland Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $

24 and Sunland would sell it for $62. The cost to assemble the product is estimated at $26 per unit and the company believes the market would support a price of $87 on the assembled unit. What decision should Sunland make
Business
1 answer:
nikitadnepr [17]3 years ago
7 0

Answer: Sell before assembly, the company will be better off by $1 per unit.

Explanation:

To solve the above question, we need to calculate the incremental profit or loss first. This will be:

= After assembling sales value - Unassembled unit sales value - Coat if further processing

= $87 - $62 - $26

= -$1

Since there is an incremental loss of $1, then the correct answer is "Sell before assembly, the company will be better off by $1 per unit".

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What is the key factor in determining sales mix if a company has limited resources?
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Answer:

Contribution margin per unit of limited resource

Explanation:

When a company has a limited resource on which the generation of income depends, it is to decide that the company cannot generate more income because it does not have more of that resource, for example space in M2 for commercialization or storage, or a manufacturing equipment, it must Investigate what is the contribution margin to the unit of that limited resource and manage the product that has the greatest.

6 0
4 years ago
Read 2 more answers
Delmar Company purchased a building on January 2 by signing a long-term $480,000 mortgage with monthly payments of $4,400. The m
photoshop1234 [79]

Answer and Explanation:

The journal entries are shown below:

For the month of January

Cash $480,000

          To Mortgage Payable $480,000

(Being the mortgage payable is recorded)

For recording this we debited the cash as it increased the assets and credited the mortgage payable as it also increased the liabilities

For the month of February

Mortgage Payable $400

Interest Expense $4,000    {($480,000 × 10%) ÷ 12 months}

             To Cash $4,400

(Being the cash paid is recorded)

For recording this we debited the mortgage payable and interest expense as it decreased the liabilities and increased the expenses and credited the cash as it decreased the assets

Now the balance left is

Beginning balance of  Mortgage Payable $480,000

Less: February Deduction (400)

Ending Balance of Mortgage Payable $479,600

6 0
3 years ago
One technique to identify use cases is to ask users what they want to achieve with a particular business procedure. this techniq
Nikolay [14]
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6 0
4 years ago
If Nadia is wondering about the best way to get her metal sculpted art into a customer's hands, what area of the marketing mix d
Alex73 [517]

Answer:

place

Explanation:

If it is in the right location like an art store then somebody will intentionally buy it because it is at an art store and it is art

6 0
3 years ago
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000
Sedaia [141]

Answer:

A) $48,000

Explanation:

Assembly                                   Painting                             Total

150 employees                          100 employees                 250 employees

44,000 square feet                   36,000 square feet          80,000 sq. feet

Administration expenses                                                     $80,000

= 150 x $320 = $48,000           = 100 x $320 = $32,000

Maintenance expenses                                                        $100,000

= 44,000 x $1.25 = $55,000    = 36,000 x $1.25 = $45,000

administration expenses = $80,000 allocated based on workers, $80,000 / 250 employees = $320 per employee

maintenance expenses = $100,000 allocated based on square feet, $100,000 / 80,000 sq. feet = $1.25 per sq. feet

7 0
3 years ago
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