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Feliz [49]
3 years ago
14

Delta Company produces a single product. The cost of producing and selling a single unit of the product at the company’snormal a

ctivity level of 60,000 units per year is:Directmaterials.................................... $5.10Directlabor........................................ $3.80Variable manufacturing overhead .... . . . . . . . . . . . . . . .. $1.00Fixed manufacturingoverhead.......... $4.20Variable selling and administrative expense . . . . . . . . . . . $1.50Fixed selling and administrative expense. . . . . . . . . . . . . . $2.40The normal selling price is 821 per unit The company’s capacity is 75,000 units per year. An order has been received froma mail-order house for 15,000 units at a special price of $14.00 per unit. This order would not affect regular sales or thecompany’s total fixed costs.Required:1- What is the financial advantage (disadvantage) of accepting the special order?2 As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product thatwere produced last year and that are inferior to the current model. The units must be sold through regular channels atreduced prices. What unit cost is relevant for establishing a minimum selling price for these units? Explain.
Business
1 answer:
iogann1982 [59]3 years ago
6 0

I assumed you typo 821 by $21 per unit, then the answer will be

1-  financial disadvantage of accepting the special order is loss of $60,000

2- a minimum selling price for these units should be $14.00

Explanation:

Loss of $60,000 = 15,000 x (14,000 – (5.1+3.8+1+4.2+1.5+2.4))

a minimum selling price for these units is $14.00 per unit because it’s the price the company can earn if accept a special order, though lower than cost of producing and selling at $18.00

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Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following
Natali [406]

Answer:

                        Big Tommy Corporation

      Profit and Loss for the year ended December 31

Sales                                                                         404,000

Cost of Goods Sold                                                 279,000

Gross Profit                                                               125,000

<em>Operating Expenses:</em>

Salaries and Wages Expense                   58,000

Office Expenses                                         16,000

Travel Expenses                                           1,000    75,000

Operating Income:                                                     50,000

Non-Operating Expenses

Income Tax Expense                                 15,000     15,000

Net Income                                                                 35,000

Explanation:

Multistep income statement makes a clear distinction on Operating Incomes and Expenses and Non-Operating Incomes and Expenses

Operating income is Profit generated from Primary activities of the company

Non-Operating Incomes and Expenses do not relate to the Primary activities of the firm.They occur as a result of secondary activities.

7 0
2 years ago
Andy, a salesperson for Fashion Seal Uniforms, tells the owner of a retirement home about the importance of caregivers having cl
choli [55]

Answer:

Exploration

Explanation:

The exploration phase of the relationship development process occurs when both parties (seller and buyer) test the actions of the other party. Both parties will explore or try how the business relationship may develop, since they are not committed yet to start a relationship.

The owner accepted to purchase a small number of uniforms to try how good or bad they are. Andy is also testing if what the owner says is true about opening new centers and needing a lot of uniforms before making an offer for a larger lot.

7 0
3 years ago
Safety and self-actualization are examples of __________. A. Credibility appeals b. Emotional appeals c. Selective appeals d. Lo
Eduardwww [97]

Safety and self- actualization are examples of emotional appeals.

<h3> </h3><h3>What is emotional appeal?</h3>

An emotional appeal is a method of persuasion and sentimental approach designed mainly to create an emotional response. Emotional appeal is specially used in advertising and politics.

For employees, job security, safety, and self-actualization matters the most. The employer can boost employees' motivation and improve their efficiency by offering them all of the above.  

Employees emotions can be attached to the job by way of developing in them a feeling of control and leadership, by appreciations and offering permanency.

Hence, safety and self-actualization are examples of emotional appeal.

Learn more about emotional appeal here:

brainly.com/question/1748019

8 0
2 years ago
Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica’s lender likely to view this credit score?
poizon [28]
<span>A.) Jessica is low risk and will pay her outstanding balances on time.</span>
6 0
3 years ago
Read 2 more answers
Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid exp
Liula [17]

Answer:

$700 (not given in the options)

Explanation:

When the policy is purchased with a payment made in advance, the entries recorded are

Debit prepaid insurance  $8,400

Credit Cash account         $8,400

After the first month, the expense incurred is

= 1/12 × $8,400

= $700

Entries then required

Debit Insurance expense   $700

Credit Prepaid Insurance    $700

5 0
3 years ago
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