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Colt1911 [192]
3 years ago
15

Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's

normal activity level of 53,000 units per month is as follows:
Per Unit
Direct materials $49.10
Direct labor $9.40
Variable manufacturing overhead $2.40
Fixed manufacturing overhead $19.90
Variable selling & administrative expense $4.40
Fixed selling & administrative expense $21.00

The normal selling price of the product is $112.10 per unit.

An order has been received from an overseas customer for 3,300 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.50 less per unit on this order than on normal sales. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $89.40 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be: _________

a. ($67,000)
b. $22,110
c. $87,780
d. ($55,440)
Business
1 answer:
Rom4ik [11]3 years ago
3 0

Answer: $87780

Explanation:

The monthly financial advantage (disadvantage) for the company as a result of accepting this special order will be calculated thus:

Sales = $295020

Less Cost:

Material = $162030

Labor = $31020

Variable manufacturing = $7920

Variable selling = $6720

Total cost = $207240

Financial Advantage = $295020 - $207240

= $87780

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The Can Division of Sheffield Corp. manufactures and sells tin cans externally for $0.60 per can. Its unit variable costs and un
Law Incorporation [45]

Answer:

Minimum transfer price  =$ 0.57

Explanation:

The Can Division of Sheffield Corp is already operating her full capacity,

This implies that it call sell all it can produce to external buyers, to remain indifferent it will have have to make the same amount of contribution from internal sales it would from external.

Therefore the minimum transfer price:

Minimum transfer price= Variable cost - internal savings in variable cost  + contribution from external sales

Savings in variable cost = $0.03

Contribution from external sales = $0.60 - $0.24 = $0.36

The minimum transfer price would be equal

Minimum transfer price = 0.24 - 0.03  + 0.36 = 0.57

6 0
2 years ago
On January 10 of the current year, Mary transfer to Green Corporation a machine purchased three years ago for $100,000. On the t
BaLLatris [955]

Answer:

First of all, I believe that their is a mistake on the question, since the FMV of the machine should be $100,000, not $10,000, or else it wouldn't make much sense.

a. What are the amount and character of Mary's recognized gain or loss?

ordinary income of $10,000

The two year note is considered boot and therefore, Mary must report it as ordinary income.

b. What is Mary's basis in the stock and note? When does her holding period begin?

Mary's basis in the stock is $60,000 (the basis of the machine), and $0 for the note (recognized as ordinary income). Her holding period began three years ago when the machine was purchased.

c. What are the amount and character of Green's gain or loss?

Under a carryover basis limit rule (for a section 351 exchange), Green Corporation's basis is reduced, but it not considered a loss or a gain. The basis of the exchanged stock must equal the carryover basis of the property given in exchange.  

d. What is Green's basis in the machine? When does Green's holding period begin?

Same as Mary's, the basis is $60,000 and the holding period is 3 years. Since Mary owns 100% of Green Corporation as a result of the exchange, her basis and the corporation's basis will be the same.

5 0
3 years ago
Laws designed to promote competition and prevent the formation of monopolies are known as _______ laws
juin [17]
<span>Laws designed to promote competition and prevent the formation of monopolies are known as _antitrust_ laws.
</span>
I hope this helped! : )
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Please mark as Brainliest!

Have a wonderful day! : )
6 0
3 years ago
Stinehelfer Beet Processors, Inc., processes sugar beets in batches.
babunello [35]

Answer:

$19

Explanation:

The computation of the financial advantage or disadvantage is shown below:

= Sale value after processed further - cost of processed further - sale value without processed further

= $91 - $29 - $43

= $19

Simply we deducted the cost of processed further and the sale value without processed further from the Sale value after processed further so that the correct amount can come

All other information which is given is not relevant. Hence, ignored it

5 0
3 years ago
The 20% off sale is a better deal than the $200 rebate or $150 coupon for the $1,500 dining set. The Porters budgeted $1,250 for
vovikov84 [41]

Answer:20% off is better and it is the only offer which is under the budget.

Explanation:Given,

The original cost of the dining set = $ 1,500,

If there is a off of 20%,

Then the discount on dinning table = 20% of 1500

= $ 300

So, the final amount of the dinning table after 20% off = 1500 - 300 = 1200 < 1250

Thus, it under the budget.

Now, in $ 200 rebate,

The new cost of the dinning table = 1500 - 200 = $ 1300 > 1250,

Thus, it is not under budget.

While, In $150 coupon,

The new cost of the dinning table = 1500 - 150 = $ 1350 > 1250,

Thus, it is not under budget.

5 0
3 years ago
Read 2 more answers
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