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
iren2701 [21]
4 years ago
13

A company’s unit costs based on 100,000 units are: The normal unit sales price per unit is $165. A special order from a foreign

company has been received for 5,000 units at $135 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone. The opportunity cost associated with this order is
Business
1 answer:
zysi [14]4 years ago
7 0

Answer: $495,000

Explanation: Opportunity cost can be defined as the cost of profits that were foregone by choosing one alternative over other. It is a part of economic cost and is not considered while calculating the accounting cost.

 In the given case, company has to forego the sale of 3000 units due to the special order production, thus, the lost sale of those 3000 units is the opportunity cost of fulfilling the special order.

This, can be computed as follows :-

opportunity cost = 3000 units * $165

                             = $495,000

You might be interested in
Fischer Company uses 12,000 units of a part in its production process. The costs to make a part are: direct material, $15; direc
Trava [24]

Answer:

Difference= $60,000 in favor of buying

Explanation:

Giving the following information:

Number of units= 12,000

Make in-house:

Direct material, $15

direct labor, $27

variable overhead, $15

applied fixed overhead, $32

Buy:

Buying price= $60

If Fischer buys the part, 75 percent of the applied fixed overhead would continue.

<u>First, we will calculate the avoidable fixed overhead per unit:</u>

Avoidable fixed overhead= 32*0.25= $8

<u>Now, the total differential cost of making in-house:</u>

<u></u>

Total cost of production= 12,000*(15 + 27 + 15 + 8)

Total cost of production= 12,000*65

Total cost of production= $780,000

Total cost of buying= 60*12,000= $720,000

Difference= $60,000 in favor of buying

4 0
3 years ago
A foreign exchange student bought a used car for $10,000 and resold it one year later for $6,500. Insurance, license, and operat
lidiya [134]

Answer:

$6000

Explanation:

Break up of the economic cost of owning and operating the car for the year is mentioned below:

Car Bought -                                                     10,000

Add: Insurance, license and operating cost - 1,500

Add: Interest (10,000 * 10%) -                           1,000

Less: Car resold -                                             (6,500)

Total -                                                                6,000

Therefore, economic cost of owning and operating the car for the year was $6,000.

7 0
3 years ago
Journalize the following selected transactions for January. Journal entry explanations may be omitted.
ludmilkaskok [199]

Answer:

Jan. 1 Received cash from the investment made by the owner, $14,000.

Dr Cash 14,000

    Cr Capital, owner 14,000

Jan. 2 Received cash for providing accounting services, $9,500.

Dr Cash 9,500

    Cr Service revenue 9,500

Jan. 3 Billed customers on account for providing services, $4,200.

Dr Accounts receivable 4,200

    Cr Service revenue 4,200

Jan. 4 Paid advertising expense, $700.

Dr Advertising expense 700

    Cr Cash 700

Jan. 5 Received cash from customers on account, $2,500.

Dr Cash 2,500

    Cr Accounts receivable 2,500

Jan. 6 Owner withdrew $1,010.

Dr Withdrawals 1,010

     Cr cash 1,010

Jan. 7 Received telephone bill, $900.

Dr Utilities expense 900

     Cr Accounts payable 900

Jan. 8 Paid telephone bill, $900.

Dr Accounts payable 900

    Cr Cash 900

7 0
3 years ago
When would a writer choose to use a passive voice?
cluponka [151]

Answer:

In some sentences, passive voice can be perfectly acceptable. You might use it in the following cases:

The actor is unknown:

The cave paintings of Lascaux were made in the Upper Old Stone Age. [We don’t know who made them.]

The actor is irrelevant:

An experimental solar power plant will be built in the Australian desert. [We are not interested in who is building it.]

You want to be vague about who is responsible:

Mistakes were made. [Common in bureaucratic writing!]

You are talking about a general truth:

Rules are made to be broken. [By whomever, whenever.]

You want to emphasize the person or thing acted on. For example, it may be your main topic:

Insulin was first discovered in 1921 by researchers at the University of Toronto. It is still the only treatment available for diabetes.

You are writing in a scientific genre that traditionally relies on passive voice. Passive voice is often preferred in lab reports and scientific research papers, most notably in the Materials and Methods section:

The sodium hydroxide was dissolved in water. This solution was then titrated with hydrochloric acid.

In these sentences you can count on your reader to know that you are the one who did the dissolving and the titrating. The passive voice places the emphasis on your experiment rather than on you.

Note: Over the past several years, there has been a movement within many science disciplines away from passive voice. Scientists often now prefer active voice in most parts of their published reports, even occasionally using the subject “we” in the Materials and Methods section. Check with your instructor or TA whether you can use the first person “I” or “we” in your lab reports to help avoid the passive.

Explanation:

7 0
3 years ago
On October 1, 20X4, Mild Co., a U.S. company, purchased machinery from Grund, a German company, with payment due on April 1, 20X
Lana71 [14]

Answer:

d. Been denominated in U.S. dollars.

Explanation:

If Mild's 20X4 operating income included no foreign exchange transaction gain or loss, then the transaction could have been denominated in U.S dollars.

Furthermore, if it was denominated in U.S. dollars, there is no foreign exchange gain or loss for Mild.

Hence, there would be a gain or loss for Grund.

6 0
3 years ago
Read 2 more answers
Other questions:
  • According to the video, what do workers in this career cluster often do? Check all that apply. sell products entertain customers
    7·2 answers
  • Baj Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The
    13·1 answer
  • Is disease prevention by the government a pure public good or a private good? Explain
    9·1 answer
  • Are used to describe the basic characteristics of study populations and other data sources.
    13·1 answer
  • Computer skills and knowledge of specialized software would be most important for someone who is
    7·2 answers
  • ________________ is hard to structure, hard to transfer, and highly personal to the source.
    13·1 answer
  • Hat does a blueprint slide do? check all that apply. provides a clear explanation of one main point provides an overview of your
    11·2 answers
  • How would an increase in the labor force affect the revenues collected by the federal government?
    9·1 answer
  • A local university has a student population that is 55% male. 60% of students are undergraduates. 38% are both male and undergra
    15·1 answer
  • Using the information provided, calculate the direct materials quantity variance. Standard price $3.00 per pound Actual price: $
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!