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storchak [24]
3 years ago
11

At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A

foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronic will incur special shipping costs of $3 per unity. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronic would realize by accepting the special order.
Reject Order Accept Order Net Income Increase (Decrease)
Revenues
Costs-Manufacturing
Shipping
Net income

The special order should be :__________
Business
1 answer:
Burka [1]3 years ago
6 0

Answer:

The special order should be : Accepted

Explanation:

<u>Analysis of whether or not to accept special order</u>

Revenues (3,000 x $25)                             $75,000

Less Variable expenses :

Costs - Manufacturing (3,000 x $20)       ($60,000)

Shipping (3,000 x $3)                                  ($9,000)

Net Income                                                    $6,000

Conclusion :

Since Net Income has increased by $6,000 as a result of special order, it should be accepted

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Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a car (basis of $3
Svetllana [295]

Answer:

Puffin’s E & P after taking into account the distribution of the car is $6,000.

Explanation:

E & P will be decreased by the higher of the adjusted basis or the fair market value of the distributed property, net of any liabilities. The distribution losses will not be taken into consideration when determining E & P. Thus the current E & P of Puffin’s $30,000 is reduced by $24,000 ($30,000 basis of the car minus the liability amount). The remaining after the distribution current E & P will be $6,000.

Therefore, Puffin’s E & P after taking into account the distribution of the car is $6,000.

5 0
3 years ago
For which of the following products is its manufacturer most likely to use intensive distribution? Multiple Choice Waterford cry
Sidana [21]

Answer: The correct answer is "Hershey chocolate bars".

Explanation: For Hershey chocolate bars its manufacturer most likely to use intensive distribution due to the characteristics of the product, which are of the edible type, of consumption and of the type of market in which it is competing, to maintain its competitiveness in the market it is necessary to use an intensive distribution.

5 0
3 years ago
Read 2 more answers
A property management company hit its corporate goals for the year by increasing profits by 5%, two points higher than its 3% go
oksano4ka [1.4K]

Available Options Are:

A. Continue training to improve its employees' skills  

B. Promote the best associates to managers  

C. Threaten lay-offs if goals are not hit  

D. Provide positive reinforcement for hitting goals

Answer:

Option D. Provide positive reinforcement for hitting goals

Explanation:

The training program is not required as the managers are already trained which means their is not skills deficit which has resulted in not achieving the business goals. Hence Option A is incorrect.

Option B is also incorrect because previously the same managers had achieved the goals hence promoting best associates to managers will not be impact making.

Option C is incorrect because threatening may result in further demotivating employees and it will also increase employee turnover. Hence it is also not a solution.

Option D is correct because the employees are demotivated and all they need is motivation which can be developed by developing a system of reward. This can be achieved by linking their interests with the company's interest. If they achieve their target then they must be awarded a certain portion of the target say 1%. This will increase their motivation to earn more by making additional sales.

7 0
3 years ago
Following are financial statement numbers and ratios for CVS Health Corporation for the year ended December 31, 2016. Total reve
Irina18 [472]

$12,651 million is what I believe the answer is. I might be wrong though.

4 0
3 years ago
Crane Company uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2019 tot
irina [24]

Answer:

$560

Explanation:

Add all the costs:

Materials $8,000

Labor $4,000

Overhead $1,000

And we will get the Total Manufacturing Cost of $13,000.

Then, add the Beginning Work in process of $5,000 to get the Cost of goods put into process of $18,000.

Now, deduct the Ending Work in process of $4,000 to get the Cost of goods manufactured of $14,000.

Since they promptly ships the goods, the $14,000 will automatically be the Cost of Goods Sold.

Finally, to get the cost per machine, just divide $14,000 by the 25 machines and we will get the $560 cost per machine.

8 0
3 years ago
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