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masha68 [24]
2 years ago
12

Harcourt Manufacturing (HM) has the capacity to produce 10,000 fax machines per year. HM currently produces and sells 7,000 unit

s per year. HM currently leases its excess capacity for a rental fee of $12,000. The fax machines normally sell for $100 each. Modem Products has offered to buy 2,000 fax machines from HM for $60 each. Unit-level costs associated with manufacturing the fax machines are $15 each for direct labor and $40 each for direct materials. Product-level and facility-level costs are $50,000 and $65,000, respectively.
Based on this information (ignore qualitative characteristics) :________.
a. HM should reject the offer because accepting it will reduce profitability by $2,000.
b. HM should accept the offer because accepting it will contribute $10,000 to profit.
c. HM should reject the offer because accepting it will reduce profitability by $10,000.
d. HM should accept the offer because accepting it will contribute $12,000 to profit.
A company should accept a special order if: _______.
a. additional revenue is greater than relevant costs.
b. the avoidable cost of making the products is less than the sunk cost.
c. the company is operating at full capacity.
d. qualitative features are unfavorable.
Business
1 answer:
krek1111 [17]2 years ago
5 0

Answer:

Harcourt Manufacturing (HM)

1. Based on this information (ignore qualitative characteristics) :________.

a. HM should reject the offer because accepting it will reduce profitability by $2,000.

2. A company should accept a special order if: _______.

a. additional revenue is greater than relevant costs.

Explanation:

a) Data and Calculations:

Production capacity for fax machines per year = 10,000

Current production units per year = 7,000

Excess capacity = 3,000 (10,000 - 7,000)

Rental fee for excess capacity = $12,000

Selling price of the fax machine per unit = $100

Unit-level costs:

Direct labor = $15

Direct materials = $40

Total cost per unit = $55

Special order = 2,000 units

Product-level costs= $50,000

Facility-level costs = $65,000

Total revenue from special order =   $120,000 (2,000 * $60)

Total variable cost for special order =  110,000 (2,000 * $55)

Contribution margin from special order $10,000 (2,000 * $5)

Comparison with Rental fee $12,000 and $10,000

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Answer:

A)Career Portfolio

Explanation:

Career portfolio can be regarded as digital display of one's professional experience as well as accomplishments. It is usually used in planning, organizing as well as documentation of Educational, skills and work sample. It can be used when applying for jobs and training programs. It gives in-depth information compare to than a resume. It should be noted that Career Portfolio is Collection of projects, reports, exams, awards and other evidence of past experience and accomplishments which may serve as a summary of an individual’s interests and abilities and give a viewer an in-depth understanding of the individual’s personality and creativity.

4 0
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Which of the following is most likely to be considered a profit center?
likoan [24]

Answer:

A. The grocery department of a Walmart Supercenter or Target Superstore

Explanation:

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3 years ago
services act as a middleman, allowing individuals to securely send and receive money. select all that apply. a. p2p b. b2b c. b2
k0ka [10]

Services act as a middleman, allowing individuals to securely send and receive money is A. p2p

<h3>How to illustrate the information?</h3>

It should be noted that p2p simply means the peer to peer platform that allows two individuals to be able to interact directly without the third party.

Peer-to-peer (P2P) lending eliminates the need for a middleman financial institution by allowing borrowers to get loans directly from other borrowers. P2P lending has become much more popular as a substitute for traditional funding thanks to websites that make it possible.

It should be noted that they act as services that act as a middleman, allowing individuals to securely send and receive money.

Therefore, the correct option is A.

Learn more about money on:

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7 0
1 year ago
Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices. All stores are lo
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Using Fixed Assets turnover ratio, we can find the net sale

Fixed Assets turnover = Net sale/Average fixed assets

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6 0
1 year ago
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Answer:

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Explanation:

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I hope my answer helps you.

8 0
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