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Amiraneli [1.4K]
3 years ago
7

Your company produces mass spectrometers for sale to colleges and universities throughout the United States. On February 12, the

University of Washtenaw contacts your company to purchase 12 mass spectrometers at $1,000,000 per unit. You enter into a contract with the university on March 1 under those terms, along with a delivery date of December 1. On April 10, you receive a letter from the university stating that, due to ambiguities in the contract language, they believe you are only owed $10,000,000. Specifically, Washtenaw states, "please find enclosed a check for $10,000,000 for payment in full, check marked as such. Also, this is the total amount of our budget. We would be more agreeable to cancelling the contract than to have to come up with another $2,000,000." Your company has not yet started production on the spectrometers. What are your options and why?
Business
1 answer:
Jobisdone [24]3 years ago
7 0

Answer:

As the Company has received a Cheque of $10,000,000 for payment in full. The Company though have not started the production it can consider such amount and cancel the contract and being a misc Income in its profit and loss account.

Though the product is being sold to an university and such organisation work on No profit no loss situation hence it can consider manufacturing 10 units and selling such units to the university at least the university also does not incur a loss of such a huge amount.

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A budget that allocates increased or decreased funds to a department by using the last budget period as a reference point is cal
dmitriy555 [2]

Answer:

D) incremental budget

Explanation:

An incremental budget is a budget in which the budget is prepared based on the last year budget or the actual performance so that the amounts that are increased or decreased could be added for the current year budget

Here in the given situation, the allocation of the budget is either increased or decreased by using the previous year budget is known as incremental budget

hence, the correct option is D. Incremental budget

8 0
3 years ago
On April 18, Riley Co. made a short-term investment in 440 common shares of XLT Co. The purchase price is $56 per share and the
Alika [10]

Explanation:

General Journal

April 18

Debit Short-term Investments 25,030

Credit Cash 25,030

(440x$56= 24,620+390) = 25,030

May 30 ,

Debit Cash 572

Credit Dividend Revenue 572

1.30×440= 572

8 0
3 years ago
On April 1, 9,000 shares of $7 par common stock were issued at $26, and on April 7, 5,000 shares of $70 par preferred stock were
Mariana [72]

Answer:

Apr 1

DR Cash $234,000  

CR Common stock   $63,000

CR   Paid in capital in excess of par - Common Stock  $171,000

<em>(To record issuance of common stock)</em>

 

Apr 7

DR Cash $540,000  

CR Preferred stock   $350,000

CR Paid in capital in excess of par - Preferred Stock  $190,000

<em>(To record issuance of preferred stock)</em>

 

Explanation:

April 1

Cash

9,000 * 26 = $234,000

Common stock

9,000*7 = $63,000

April 7

Cash

5,000*108 = $540,000

Preferred stock

5,000*70 = $350,000

7 0
3 years ago
Suppose the number of people employed (E) is currently 100 and the number unemployed (U) is 10 and the labor force is fixed at 1
artcher [175]

Answer:

9.09% and 5.263%

Explanation:

The computation is shown below:

a. The current rate of unemployment is

= Number of Unemployed people ÷ labor force

= 10 ÷ 110

= 9.09%

b. The natural rate of unemployment is

= Separation rate ÷ Separation rate + finding rate

= 0.01 ÷ 0.01 + 0.18

= 0.01 ÷ 0.19

= 5.263%

These both should be expressed in a percentage forms

4 0
3 years ago
If a company adds 60 new workstations at a cost of $100,000 each and also spends $20 million for addition in its camera/drone as
vredina [299]

Answer:

$1,300,000

Explanation:

Given:

Number of workstation = 60

Cost of each workstation = $100,000

Additional Cost = 20,000,000

Computation of total cost:

= Total work station cost + Additional cost

= ($100,000 x 60) + $20,000,000

= $6,000,000 + $20,000,000

= $26,000,000

Assume Depreciation rate = 5%

Deprecation = Total Cost x Depreciation rate

= $26,000,000 x 5%

= $1,300,000

5 0
3 years ago
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