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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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Juxipi Inc. is well known for having a stronger credit score than its competitors. that is why, buyers are more willing to buy p
rewona [7]

Answer:

d. Commercial paper

Explanation:

-Short-term bank loans is a loan that has to be paid back in a year.

-Factoring is when a company sells its accounts receivable to another company at a cheaper price.

-Trade credit is a credit that a supplier gives to its clients to make the payments later.

-Commercial paper is a promissory note used by companies to get money to cover short-term liabilities and has a period of time of up to a year.  

According to this, the answer us that the short-term financing option that is being offered by Juxipi Inc. in the given scenario is commercial paper.

4 0
3 years ago
Brody and tanya recently sold some land they owned for $200,000. they received the land five years ago as a wedding gift from br
Andrej [43]
When calculating the long term capital gain on the sale of the property, it is important to make sure adjustments are made from the original date of purchase and when the land was gifted. 

To solve:
Adjusted amount = Original purchase amount + (gift tax X difference in what the land was worth/original land worth amount)
Adjusted amount = $20,000 + ($40,000 X $80,000/$100,000)
Adjusted amount = $52,000

Land owned for $200,000
Adjust amount is $52,000

$200,000 - $52,000 = $148,000

The long-term capital gain on the property is $148,000.

5 0
3 years ago
Sea Company reports the following information regarding its production cost. Units produced 47,000 units Direct labor $ 40 per u
ratelena [41]

Answer:

Unitary variable cost= $95

Explanation:

Giving the following information:

Direct labor $ 40 per unit

Direct materials $ 33 per unit

Variable overhead $ 22 per unit

<u>The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).</u>

Unitary variable cost= 40 + 33 + 22

Unitary variable cost= $95

6 0
3 years ago
Why are savings tools ideal for storing emergency savings? identify at least two reasons. (2 points?
Vinvika [58]
It’s secure and liquid. Hopes this helps!!!!!

4 0
3 years ago
Maker-Bot Corporation has 10,000 shares of 10%, $90 par value, cumulative preferred stock outstanding since its inception. No di
AleksandrR [38]

Answer:

D) $130,000

Explanation:

We can compute this by calculating the total dividends payable to preferred stock holders each year.

Dividends payable = 10,000 * 90 * 0.10 = $90,000

Since the shares are cumulative, the total preferred dividend payable at the end of third year is = $90,000 * 3 = $270,000

So common share in dividend = Total paid - Preferred dividend cumulative

Common Dividend share = 400,000 - 270,000 = $130,000

Hope that helps.

5 0
2 years ago
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