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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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maxonik [38]

Answer:

FALSE

Explanation:

It is False that the difference between operations and projects is that operations end when their objectives have been reached, whereas projects do not.

The reverse is true because projects are time-bound and they come to an end when their objectives have been achieved, but company operations are expected to continue as a going concern.

A project is an activity to meet the creation of a unique product or service, an thereafter terminates while operations are day to day routine activities that are expected to continue

3 0
3 years ago
Which of the following statements is true regarding depreciation methods?
r-ruslan [8.4K]

Answer:

The correct answer is letter "D": The use of a higher estimated life and a higher residual value will lower the annual amount of depreciation expense recognized on the income statement.

Explanation:

Depreciation distributes the cost and cost over the useful life of the assets of tangible and real assets. A business could depreciate an asset over a period of up to thirty years, depending on the type of asset it is. There are many depreciation methods but, among the most common we can find the <em>Straight-line method, the Double Declining Balance method</em>, and <em>the Units of Production method</em>. As long as the estimated life of the asset and its residual value is high, the amount filed for the depreciation will be lower.

7 0
3 years ago
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Ede4ka [16]

Answer:

$1 or 100% of the tax

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The curve for a perfectly inelastic good is vertical. So any increase in taxes will be paid by the customers.

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7 0
3 years ago
Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017.
Dmitry_Shevchenko [17]

Answer:

The answers are in the attachment below.

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