Answer:
Incremental Analysis for special order
units <u>10,000</u>
offer price $290,000
Variable cost:
Cost of goods sold($22.5 *10,000) 225,000
Selling and Administrative expenses
($2.05*10,000) 20,500
shipping cost (0.77*10,000) <u> 7,700 </u> <u> (253,200)</u>
Additional contribution <u> 36,800</u>
Explanation:
variable cost goods sold per unit = ( 3,633,000 - 960,000)/118800 = $22.5
Variable selling and admin expense per unit = ( 517,540 - 274,000)/118800
= $ 2.05
Answer:
d. Equilibrium price will increase, equilibrium quantity will decrease"
Explanation:
"Ceteris paribus" all things being equal; the higher the price, the lower the quantity demanded. If there are speculations about possible increment in price of wheat in near future time, it will result into panic buying of wheat in the market today and that will definitely increase the equilibrium price of the wheat and decrease the equilibrium quantity of wheat demanded.
Answer:
An employer is required to accrue a liability for employee's right to receive compensation for future absences when certain conditions are met and as a result it makes it a requirement for a liability to be accrued for vacation benefits that employees have earned but have not yet taken.
In the given case, employer offers each of its 50 employees 20 vacation days per year. As of January, each employee has earned 1.5 days. The Vacation days which are unused at the end of the year may be carried forward to the next year. There is no anticipation of any forfeitures.
Therefore employer must record a liability for employees vacation days earned so far for presenting true and fair view of the financial statements.
Complying with the law will avoid legal problems and assure customers about the quality of the products sold by a business. ... It will also help to maintain a good reputation for the business.
