Answer:
It is profitable to accept the special offer.
Explanation:
Giving the following information:
The shopping mall would like to purchase 200 extra-large white trees. Apex Company has the excess capacity to handle this special order. The shopping mall has offered to pay $120 for each tree.
Variable costs:
Direct materials $50.00
Direct labor (variable) $3.50
Variable manufacturing overhead $1.00
Additional variable cost= $6
This special order would require an investment of $10,000 for the molds required for the extra-large trees.
Because it is a special offer and there is unused capacity, we will not have into account the fixed costs (except the incremental fixed cost).
Unitary variable cost= 50 + 3.5 + 1 + 6= $60.5
Fixed costs= 10,000
Incremental income= (200*120) - (200*60.5) - 10,000= $1,900
It is profitable to accept the special offer.
The payback period for the investment is 4 years.
<h3>What is the payback period?</h3>
The payback period is a capital budgeting method used to determine the profitability of an investment. It determines the number of years it would take to recover the amount invested in a project from its cumulative cash flows.
payback period = amount invested / cash inflow
$100,000 / $25,000 = 4 years
To learn more about the payback period, please check: brainly.com/question/26068051
The answer is product development. The formation of products with new or dissimilar features that agreement new or additional welfares to the customer. The product development may include alteration of an current product or its performance or formulation of an completely new product that gratifies a afresh distinct customer want or market place.
Answer:
Yes
Explanation:
Every establishment planning to serve alcohol should have a rbs certification.
Answer:
Bank Reconciliation Statement as of October 31
Particulars Amount Particulars Amount
Balance as per bank $350 Balance as per books $806
Add: Late deposit $433 Less: Returned checks $80
Less: Outstanding check $66 Less: Error recordings $9
($24+$42) ($65-$56)
Reconciled Balance $717 Reconciled Balance $717
