1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Murljashka [212]
3 years ago
9

Burns Industries currently manufactures and sells 18,000 power saws per month, although it has the capacity to produce 33,000 un

its per month. At the 18,000-unit-per-month level of production, the per-unit cost is $61, consisting of $38 in variable costs and $23 in fixed costs. Burns sells its saws to retail stores for $78 each. Allen Distributors has offered to purchase 4,800 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs. Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least:
Business
1 answer:
trasher [3.6K]3 years ago
3 0

Answer:

Burns Industries

Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least:

above $38 (the variable cost per unit).

Explanation:

a) Data and Calculations:

Monthly production and sales units = 18,000

Production capacity per month = 33,000 units

Costs at the 18,000-unit-per-month level of production:

Variable costs = $38

Fixed costs =        23

Total per unit =  $61

Selling price per unit = $78

Special offer for 4,800 saws per month, without changing the fixed manufacturing costs.

b) Incremental analysis approach is a management decision technique that specifies that only relevant, marginal, or differential costs should be taken into account.  It rules out the inclusion of sunk or fixed costs, which do not change between alternatives.

You might be interested in
Some of the advantages of a functional project where the project is housed in a functional division include which of the followi
Ganezh [65]

Answer:

The correct answer is b. A team member can work on several projects.

Explanation:

Generally, there is a group of personnel who carry out repetitive tasks and can take over their functions without jeopardizing an improvement that is attempted. For this reason, the person in charge of the project can carry out several implementations without jeopardizing the normal development of the tasks, which allows covering broadly several areas and introducing best practices almost at the same time.

5 0
3 years ago
2. If the government decided to subsidize the production of a good, the result would be a decrease in the equilibrium price and
kogti [31]

Answer: True

Explanation:

The subsidy will increase the supply of the good, and therefore the supply curve will shift to the right. Then its intersection with the demand curve will be located at a lower price and with a larger quantity.

5 0
3 years ago
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as​ follows: Direct mater
MrRa [10]

Answer:D.None of the option is correct, the correct answer is Buy; savings=$203,000

Explanation:

The firm will Incurred the total fixed overhead it decides to make.

The total cost of making 6000 units is $163*6000=$978,000

The total cost of buying is $144*6000= $864,000 and when we deduct $89,000 to be saved from fixed overhead by buying we have a total cost of( $864,000-$89,00) =775,000.

This invariably means the company will save ($978,000-$775,000) which is equal to= $203,000 by buying.

6 0
3 years ago
Which of the following are conflict indicators?
adell [148]

All of these can be indicators of conflict EXCEPT

having a cheerful, positive demeanor and respectful comments.

In a well-functioning organization, you would hope to find both of these traits amongst your workers. They are signs that things are running smoothly with little conflicts.

7 0
3 years ago
Read 2 more answers
Transactions involving the purchase and sale of fixed assets would be considered _______ activities.
ohaa [14]
Transactions involving the purchase and sale of fixed assets would be considered INVESTING activities.
Investing activities refers to those activities carried out by the company which involve sales or purchases of fixed assets such as building and equipment.
4 0
3 years ago
Other questions:
  • Assuming a 24 hour operation in a warehouse, and an arrival following Poisson distribution with mean rate of 36 per day and serv
    13·1 answer
  • "The​ S&H Construction Company expects to have total sales next year totaling $ 14 comma 700 comma 000. In​ addition, the fi
    15·1 answer
  • Prompt<br> Why is it important to eliminate debt as soon as possible?<br> Read More &gt;&gt;
    8·2 answers
  • The Fabricating Department started the current month with a beginning Work in Process inventory of $10,500. During the month, it
    9·1 answer
  • Consolidated financial statements are prepared when a parent-subsidiary relationship exists in recognition of the accounting con
    11·1 answer
  • Is the time it takes to fly from city upper a to city upper time it takes to fly from city a to city b discrete or? continuous?
    11·1 answer
  • Debbi Fields' success as an entrepreneur can be attributed to her prior business training and
    5·1 answer
  • Suppose the u.s. house of representatives is debating a bill to fund construction and maintenance for the nation's highway syste
    5·1 answer
  • (L.O. 2) Nolan Company sells its product on an installment basis, earning a $450 pretax gross profit on each installment sale. F
    6·1 answer
  • There is no direct competition in a particular industry, yet a firm operating in such an industry will have almost no control ov
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!