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marysya [2.9K]
3 years ago
12

Tarazzz Company manufactures computers. The following cost information for the manufacture of one computer has been compiled. Di

rect materials $48 Direct labor 64 Variable manufacturing overhead 40 *Fixed manufacturing overhead 48 Total cost per unit $200 *The $48 amount reflects the amount of indirect cost allocated to each unit. However, as indicated, the total of these indirect costs is fixed. Tarazzz has received a special order for 1,000 computers at a price of $150 per unit. By how much will overall company net income change if the order is accepted
Business
1 answer:
zalisa [80]3 years ago
3 0

Answer:

Company net income will DECREASE by $2,000 if the order is accepted.

Explanation:

Company net income will DECREASE by $2,000 if the order is accepted.

Additional order will produce additional sales revenue of $150 per unit

The marginal cost for this order = Variable costs (Direct material + Direct labour + variable cost) =$152 per unit

Since the marginal cost ($152) is more than the revenue ($150)per unit, there will be a loss of $2 per unit.

So the net income of the company will DECREASE by $2000 ($2x 1000)

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if an interest inventory reveals that you are highly interested in solitary, introverted work, what might be the best type of ca
Softa [21]
In my opinion, venturing into world of Arts could be a favorable path for a person highly interested in solitary, introverted work. Visual arts such as painting and photography (nature, macro-shoots, etc) could be better choices. Literature might interest you too. The art of words would allow you to express yourself without talking to animate objects. One could pick a pen or stare at his or her computer when indulging oneself in the ARTS. 

You do not have to impress others, your masterpiece could do the talking for you.

Hope this helps. Have a nice day!
8 0
3 years ago
One way that the world bank might experience an adverse selection in its own lending is if __________.
Sloan [31]

Adverse selection describes situations when high-risk persons are more likely to receive insurance or when one bargaining side has important knowledge that the other does not. Our goal is to influence decision-makers, both inside and outside of government, to consider the future and adopt long-term plans.

When vendors and/or purchasers have different knowledge about a certain component of a product's quality, this is referred to as adverse selection. Thus, those who work in hazardous environments or lead high-risk lives are more likely to buy life or disability insurance, knowing that they will likely be able to use it.

To learn more on world bank

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6 0
1 year ago
Wasson Widget Company is contemplating the production and sale of a new widget. Projected sales are $300,000 (or 75,000 units) a
Ber [7]

Answer:

Target cost per unit = $3.52

Explanation:

Given:

Projected sales = $300,000 or 75,000 units

Desired profit = $36,000

Find:

Target cost per unit

Computation:

Target cost per unit = [Projected sales - Desired profit] / Total units

Target cost per unit = [$300,000 - $36,000] / 75,000

Target cost per unit = $264,000 / 75,000

Target cost per unit = $3.52

8 0
2 years ago
This information is available for the Automotive and Other Operations Divisions of General Motors Corporation for 2006. General
Paraphin [41]

Answer:

A. Inventory turnover ratio = 5.927

B. Current ratio = 0.95

C. Current ratio after adjusting for the LIFO reserve =  0.97

Explanation:

Requirement A

We know,

Inventory turnover ratio = Cost of goods sold ÷ Average inventory

Given,

Cost of goods sold = 164,682

Average inventory = Beginning inventory + Ending inventory

Average inventory = $13,862 + $13,921

Average inventory = $27,783

Putting the values into the formula, we will get

Inventory turnover ratio = Cost of goods sold ÷ Average inventory

Inventory turnover ratio = $164,682 ÷ $27,783

Inventory turnover ratio = 5.927

We know,

Days in inventory = $365 ÷ $5.927

Days in inventory = 61.6 days

Requirement B

We know,

Current ratio = Current asset ÷ Current liabilities

Given,

Current asset = $64,131

Current liabilities = $67,822

Putting the values into the formula, we can get

Current ratio = Current asset ÷ Current liabilities

Current ratio = $64,131 ÷ $67,822

Current ratio = 0.95

We know,

The current ratio shows us how a company pays its current liabilities.

We assume the inventory is reported in the current asset using the LIFO method.

Requirement C

We know,

Current ratio after adjusting for the LIFO reserve = (Current asset + LIFO reserve) ÷ Current liabilities.

Given,

Current asset = $64,131

LIFO reserve = 1,508

Current liabilities = $67,822

Putting the values into the formula, we can get

Current ratio after adjusting for the LIFO reserve = (Current asset + LIFO reserve) ÷ Current liabilities

Current ratio after adjusting for the LIFO reserve = ($64,131 + 1,508) ÷ $67,822

Current ratio after adjusting for the LIFO reserve = 65,639 ÷ $67,822 = 0.97

Current ratio after adjusting for the LIFO reserve =  0.97

8 0
2 years ago
Which of the following items must be added to the cash balance per ledger in preparing a bank reconciliation which ends with adj
astraxan [27]

Answer: Note receivable collected by bank in favor of the depositor and credited to the account of the depositor

Explanation:

A bank reconciliation is when the records for a cash account of an entity are been matched to the corresponding information that are provided on a bank statement.

When preparing a bank reconciliation which ends with adjusted cash balance, the note receivable collected by bank in favor of the depositor and credited to the account of the depositor must be added to the cash balance per ledger.

7 0
2 years ago
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