Answer:
The annual capacity is 85000 units. If order is accepted of 12000 units the company will be able to sell only 73000 units (instead of 78000).
Explanation:
Current Net Income calculation and New Net Income calculation are atteched in the archive.
- Increase in income = new income – old income = 370000 – 340000 = $30000
- Marston’s Net Income will INCREASE by $30,000 if it accepts the special order.
- The above increase can be also understood as---
Contribution gain on special order – 12000 units x ($105-$90) = $180,000
(-) Contribution lost of normal sale – (78000 units – 73000 units) x ($120-$90) = $150000
Net INCREASE = 180000 – 150000 = $30,000
Answer:
c.direct labor dollars, direct labor hours, machine hours
Explanation:
The allocation bases are the base through which the overhead cost is allocated on the basis of direct labor in dollars amount, direct labor hours, machine hours, occupied square foot, etc
The base of allocation is the allocation method through which the indirect cost is distributed to the departments like - production department, service department, etc
Answer:
a) Learning Costs Curve:
Quantity Marginal Total Cost ($) Average Cost (Units)
Cost ($) ($/unit)
1 $76 $76 $76
2 $70 $146 $73
3 $64 $210 $70
4 $58 $268 $67
5 $52 $320 $64
6 $46 $366 $61
b) For a request for proposal for two units, the break-even price for the two units is $146 ($73 per unit).
c) For two more units, the break-even price for them alone is $122 ($268 - $146). Each unit's break-even price will be $61 ($122/2).
Explanation:
a) A break-even price is a price that is equal to the total cost. At break-even, there is no profit and there is no loss. The total cost equals total revenue.
b) The learning cost curve shows how the "marginal cost decreases as a result of an increase in production by one unit." This curve can be illustrated graphically to show how the marginal and average costs reduce as a result of the increase in the quantity produced.
Answer:
B. $140,000.
Explanation:
Inventory purchases refers to the amount of goods or merchandise bought during a particular period by merchandisers or sellers such as retailers, wholesalers, or distributors with aim of selling them to customers.
Inventory purchases can be determined using the formula for computing the cost of goods sold as follows:
Cost of goods sold = Beginning inventory + Inventory purchases - Ending inventory
Substituting the values in the question into the formula above and solve for inventory purchases, we have:
$145,000 = $18,000 + Inventory purchases - $13,000
Inventory purchases = $145,000 + $13,000 - $18,000 = $140,000
Therefore, inventory purchases equal <u>$140,000</u>.
Answer: (B) Nutrition fact panel
Explanation:
The nutrition fact panel is one of the primary tool which is used for determining the nutrition and also the healthfulness of the given material and the products.
The nutrition fact panel is the part of the food label and it providing the information about the content of nutrient in the food and the various types of beverages.
It basically provide the information about the sodium, fat content and the sugar.
Therefore, Option (B) is correct.
