The most appealing approach to diminish or take out the
effect of paying duties on sets imported to an organization's dispersion
distribution center in Europe-Africa is to raise the organization's offering
cost of footwear in Europe-Africa by everything of the tax and pass all tax
costs along to the buyers of the organization's footwear, this system has the
upside of totally taking out the organization's presentation to import taxes in
Europe-Africa.
Answer:
cost of goods sold = $580
Explanation:
The cost of the goods sold means the cost price of the total sales volume. As the company uses FIFO (First-in, First-out) method and also uses the perpetual inventory system, the cost of goods sold =
Cost of goods sold =
20 units × $19 = $380 (The price is from November 1)
10 units × $20 = $200 (The price is from November 10)
The total cost of goods sold (30 units) = $580
In the elastic portion of the demand curve.
Answer:
It is more profitable to continue processing the units.
Explanation:
Giving the following information:
Product A:
Units= 23,000
Selling price= $420,000
Continue processing:
Product B= 6,000 units sold for $106 each
Product C= 11,900 units sold for $52 each
Total cost= $280,000
We need to calculate the effect on the income of both options and choose the most profitable on<u>e. We will not take into account the first costs of Product A because they are irrelevant.</u>
Option 1:
Effect on income= $420,000
Option 2:
Effect on income= (6,000*106) + (11,900*52) - 280,000
Effect on income= $974,800
It is more profitable to continue processing the units.
