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ryzh [129]
3 years ago
15

Finch Modems has excess production capacity and is considering the possibility of making and selling paging equipment. The follo

wing estimates are based on a production and sales volume of 1,600 pagers. Unit-level manufacturing costs are expected to be $26. Sales commissions will be established at $1.60 per unit. The current facility-level costs, including depreciation on manufacturing equipment ($66,000), rent on the manufacturing facility ($56,000), depreciation on the administrative equipment ($13,800), and other fixed administrative expenses ($74,950), will not be affected by the production of the pagers. The chief accountant has decided to allocate the facility-level costs to the existing product (modems) and to the new product (pagers) on the basis of the number of units of product made (i.e., 5,600 modems and 1,600 pagers). Required a. Determine the per-unit cost of making and selling 1,600 pagers. (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. Assuming the pagers could be sold at a price of $40 each, should Finch make the pagers
Business
1 answer:
Naily [24]3 years ago
3 0

Answer:

a). Per unit cost = $ 159.31

b). Yes, Finch Modems should make the pagers.

Explanation:

a). Facility level cost proposed to be allocated to the pager line

$=\frac{1600}{5600+1600} \times (66,000+56,000+13,800+74,950)$

= 0.22 + 210750

= $ 210750.22

Facility cost per unit of pager = $\frac{210750.22}{1600}$ = $ 131.71

Cost per unit of pager = $ 26 + $ 1.60 + $ 131.71

                                     = $ 159.31

b). At the selling price of $ 40 per unit, the pager line will result in an operational loss, the profit for the company as a whole will increase if it decides to manufacture the pagers.

Contribution margin per unit of pager = $ 40 - ( $ 26 + $ 1.60)

                                                               = $ 15.6

Total contribution margin per unit of pager = 1600 x $ 15.6

                                                                        = $ 24,960

The net operating income for the company would increase by $ 24.960 if the pagers are added to its product portfolio.

Hence Finch Modems should make the pagers.

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Adams Industries holds 42,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exe
olga2289 [7]

Answer:

investment in FedEx = 4410000

Unrealized holding gain = 420000

Explanation:

given data

FedEx common stock = 42,000 shares

market value = $95

market value = $105

to find out

what amount will it be reported in the 2019 balance sheet

solution

we know that It is coming under available for sale security since the shares hold is less than majority of outstanding shares

and here

investment in FedEx =42,000  × 105

investment in FedEx = 4410000

and

Unrealized holding gain is = ( 105 - 95 ) × 42000

Unrealized holding gain = 420000

5 0
4 years ago
Annette, an energetic college junior, had been involved in the selling of goods for a number of years online. Annette supported
bagirrra123 [75]

Answer:.c. Yes, deceptively passing one's goods off as designed by someone else is wrong

Explanation:This is like plagiarism or illegally coping of one's own music, anything that has to do with copying someone else work is illegal be wise you are taking someone else's work and jeopardizing its value when you make it a copy.

People will think these copies are original Gorgo Ormani and because it is likely that Annette will make them cheaper they will buy more of these fake items instead of buying the original hence she will also be negatively affecting the market for this brand.

You can't copy something that isn't yours because you don't have that right hence this is deceptive action and legally wrong.

5 0
3 years ago
Eve's Apples opened for business on January 1, 2021, and paid for two insurance policies effective that date. The liability poli
Liula [17]

Answer:

The balance of Eve's Prepaid Insurance account as of December 31, 2021 is $28,200

Explanation:

Computation of prepaid Insurance

Insurance 1 ($55,800*6/18)       =  $18,600

Insurance 2 ($19,200*12/24)     =  <u>$9,600</u>

Total Prepaid Insurance               <u>$28,200</u>

7 0
3 years ago
Economists agree that a. neither high inflation nor moderate inflation is very costly. b. both high and moderate inflation are q
bezimeni [28]

Answer:

High inflation is costly, but they disagree about the costs of moderate inflation.

Explanation:

Inflation can be defined as the persistence rise in the price of goods and services. Inflation leads to a decline in the value of money this means that individuals may no longer to buy enough thing with the same amount of money which is previously enough to buy the things needed. The rise in the price of goods will equally mean inability to purchase the normal quantity of goods.

The main causes of inflation are demand pull and cost push. Demand pull occurs when manufacturers increase their prices due to the increase in demand for their products. Cost push occurs when manufacturers increase the prices of their products because the costs have also increased.

4 0
3 years ago
The internal rate of return of a capital investment Select one:
Semmy [17]

Answer:

E. Answers c and d are correct.

Explanation:

C. Must exceed the cost of capital in order for the firm to accept the investment. Because in case of being lower than the cost of capital would be convenient to invest in something riskless.

D. Is similar to the yield to maturity on a bond. As the calculation of any rate of return is all about the expected cash flow.

5 0
3 years ago
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