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gavmur [86]
3 years ago
15

Cincinnati t-shirts prints custom t-shirts. The cost to produce one shirt is: direct materials, $10; direct labor, $1.20; and ma

nufacturing overhead $4.50. Cincinnati Children’s Hospital asked Cincinnati t-shirt to sell them custom t-shirts for $12 each for a local charity event. Direct material and direct labor are required for each t-shirt. Of the manufacturing overhead, $1.50 is variable and would be incurred on each additional unit. The remaining $3 in overhead is allocated fixed overhead that would not be increased or decreased by this order. What would be the effect on net income if they accept this special order and sell 200 shirts to Cincinnati Children’s Hospital for $12 each?
Business
1 answer:
egoroff_w [7]3 years ago
5 0

Answer:

Effect on income= $140 decrease

Explanation:

Giving the following formula:

Production costs:

Direct material= 10

Direct labor= 1.2

Variable overhead= $1.5

Selling price= $12

Number of units= 200

<u>Because it is a special offer and there is unused capacity, we will not take into account the fixed costs. </u>

Effect on income= Units sold*unitary contribution margin

Effect on income= 200*(12 - 10 - 1.2 - 1.5)

Effect on income= $140 decrease

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Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend yield of 7.50% and a par value of $60.
maksim [4K]

Answer:

10.71%

Explanation:

The computation of the required rate of return on this preferred stock is shown below :

The Required return on preferred stock is

= Dividend ÷ market value of preferred stock

= 7.50 ÷ $70

= 10.71%

By dividing the dividend from the market value of preferred stock  we can get the  Required return on preferred stock and the same is to be considered

therefore we ignored the par value i.e $60 as this is not relevant

5 0
3 years ago
On August 1, Batson Company issued a 60-day note with a face amount of $58,800 to Jergens Company for merchandise inventory. (As
Trava [24]

Answer:

a. $58,800

b. $57,820

Explanation:

Generally, notes are issued on the discounted or face value. It is face value when the price of the note is the same as the face value while it is discounted when the price of the note is lower than the face or par value.

a. Since the note is issued on the face value of $58,800 , it means that the proceed is the same amount. The proceeds from a note that is issued, is that price at which the note is issued.

b. Discount value

= $58,800 × 10% × 60/360

= $980

Proceeds

= Face/par value of the note - Discount value of the note

= $58,800 - $980

= $57,820

5 0
3 years ago
A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in it
MrRissso [65]

Answer:

$116.28

Explanation:

This can be calculated as follows:

Mark up = [1 ÷ (1 - Lerner index)]

Price = Mark-up × Marginal cost

        = [1 ÷ (1 - 0.57)] × $50

Price = [1 ÷ 0.43] × $50 = $116.28  

Therefore, the price this firm will charge its customers is $116.28.

7 0
3 years ago
Question 13 when the total u.s. production of goods and services is divided into consumption goods and services, capital goods,
Annette [7]
Private good service. government goods service . import good service.export good service
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2 years ago
The attributes of a conventional corporation include that: Multiple select question. it is state chartered it is a legal entity
Scrat [10]

The attributes of a corporation include:

  • It is state chartered
  • It is a legal entity.
  • Corporate liability is separate from owners.

<h3>What is a corporation?</h3>

A corporation simply means a large company that's acts as a single entity. It's also recognized by law.

A corporation is state chartered, legal entity, and its corporate liability is separate from owners. It's usually a large group of company.

Learn more about corporation on:

brainly.com/question/2514694

8 0
2 years ago
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