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2 years ago

Speedy Bikes could sell its bicycles to retailers either assembled or unassembled.

Business

1 answer:

Feliz [49]2 years ago

7 0

Answer:

Speedy Bikes

a. Incremental Analysis for the sell-or-process-further decision:

Cost of an Cost an Difference

unassembled bike assembled bike

Alternative 1 Alternative 2 Increment

Sales price of unassembled bike $450 $495 $45

Manufacturing cost per unit $290 $312 (22)

Net operating income $160 $183 $23

b. Speedy should process the bikes further.

c. It will generate an incremental net operating income of $23 per bike.

Explanation:

a) Data and Calculations:

Cost of an Cost an

unassembled bike assembled bike

Direct materials $150 $155

Direct labor 70 80

Variable overhead (70% of direct labor) 49 56 ($80 * 70%)

Fixed overhead (30% of direct labor) 21 21

Manufacturing cost per unit $290 $312

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<u>Explanation</u>:

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When a product is sold, the buyer of the product is charged with one-half of the tax burden and the seller of the product bears the other-half of the tax burden.

The incidence of tax can be observed in two ways:

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3 years ago

Charleston Company has two departments (Processing and Packaging) and uses a job-order costing system. Charleston applies overhe

olga_2 [115]

Answer:

$1.236= Estimated manufacturing overhead rate

Explanation:

Giving the following information:

Processing:

Direct labor cost= $44,500

Applied overhead= $55,000

To determine the estimated overhead rate, we need to use the following formula:

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55,000= Estimated manufacturing overhead rate*44,500

55,000/44,500= Estimated manufacturing overhead rate

$1.236= Estimated manufacturing overhead rate

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3 years ago

Countries that are partly industrialized but extract profits from poor countries to pass on to core countries are called?

Alenkasestr [34]

Semiperipheral countries. they have traditional values and institutions.

<h3>What is Semi-periphery countries?</h3>

According to world-systems theory, the industrialising, primarily capitalist countries that are situated halfway between the periphery and the core countries are the semi-periphery countries, also known as merely the semi-periphery.
Semi-periphery countries are frequently situated physically between core and peripheral regions as well as between two or more competing core regions.
They have organisational traits with both core countries and periphery countries.

<h3>What do you mean by semi-peripheral regions?</h3>

Semi-peripheral areas in world systems theory are those that are situated halfway between the core and the peripheral.
The organisational structure of these nations or areas is made up of both core and peripheral nations, and they are frequently situated geographically between two or more core nations.

Learn more about Semi-periphery countries here:

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1 year ago

5. A raise in the price of a product causes _____. a decrease in supply an increase in demand an increase in competition a decre

grigory [225]

Answer:

Explanation:

a decrease in competition

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2 years ago

In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for a. oper

Sonbull [250]

Answer:

The correct answer is letter "A": operating activities.

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Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.

When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.

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3 years ago