Answer:
the amount of avoidable cost associated with the segment is $754,000
Explanation:
The cost associated with the segment to be eliminated including:
- Advertising expense $140,000
- Supervisory salaries $300,000
- Allocation of companywide facility-level costs $130,000
- The loss for unsold building (*): $60,000
- Maintenance costs on equipment $112,000
- Real estate taxes on building $12,000
The total cost is $754,000
(*) The earning from sold building (book value) = Market value of building $160,000 - Book value of building $100,000 = $60,000
Answer:
The correct answer is the option B: market price.
Explanation:
To begin with, the concept known as "Market Price" in the field of marketing and business refers to the specific number that will contain all the costs as well as the margin wanted to end up formulating what the customers will pay when they are wanting to buy the product or service. Therefore that the market price must include all product and period costs that are necessary for making and marketing as well the product or service itself. It is obvious that the marketing costs are as important as all the direct costs that are needed for the proper production of the product due to the fact that without it the product may not be sell to any one.
Answer:
Effect on income= 1,120,000 - 440,000= 680,000 increase
Explanation:
Giving the following information:
Sanchez Semiconductors produces 400,000 tech computer chips per month.
The variable costs to make the component are $ 1.30 per unit, and the fixed costs are $ 1,200,000 per month. The company has been approached by a foreign producer who can supply the component, within acceptable quality standards, for $ 1.10 each. If the company chooses to outsource, fixed costs can be reduced by 50%.
Make in house:
Variable cost= 400,000*1.3= 520,000
Unavoidable Fixed costs= 600,000
Total= 1,120,000
Buy= 1.1*400,000= 440,000
Answer:
Rice Co.
Journal Entries:
April 5:
Debit Inventory $28,000
Credit Accounts Payable (Jax Company) $28,000
To record the purchase of goods, terms 2/10, n/30.
April 6:
Debit Freight-in Expense $700
Credit Cash Account $700
To record the payment of freight costs for goods purchased from Jax Company.
April 7:
Debit Equipment $30,000
Credit Accounts Payable $30,000
To record the purchase of equipment on account.
April 8:
Debit Accounts Payable (Jax Company) $3,600
Credit Inventory $3,600
To record the return of goods to Jax Company.
April 15:
Debit Accounts Payable (Jax Company) $24,400
Credit Cash Discount $488
Credit Cash Account 23,912
To record the full settlement on account.
Explanation:
Rice Co's journal entries are made on a daily basis as transactions occur. They show the accounts to be debited and the ones to be credited in the general ledger. Journal entries are the initial records of transactions made by the company in its accounting system.
Answer:
b. Product Customization
Explanation:
In the bicycle industry, the feel of high-end bicycles when they are ridden is important. As a serious rider becomes accustomed to a particular bicycle, it is very difficult for that rider to switch to an alternative supplier. This is an example of product differentiation through product customization. Product customization can be defined as it is the process where company tailor each and every single product according to the needs and wants of every single individual customer. Every customer can customize each and every single feature and option present in the product according to his or her desire. For example, when you but Dell laptop from their web store, you can customize your laptop where you can select processor, model, screen, speakers, keyboard, hard drive, motherboard of your own choice.
