Answer:
The order should be accepted as it will icnrease contribution by 2,700 dollars
Sales revenue 112,500
variable cost (106,800)
additional fixed cost <u> (3,000)</u>
contribution 2,700
Explanation:
We have to calculate the variable cost to compare against the offer sales price:
COGS
2,600,000 x 70% = 1,820,000
Operating expense
840,000 x 80% = 672,000
total variable 2,492,000
variable per unit:
2,492,000 / 350,000 = 7.12
we now calculate the contribution of the order and subtract the additional cost:
15,000 units x (7.50 - 7.12) -3,000 additional shipping
contribution 2,700
Answer:
B
Explanation:
Money has several functions, one of its principal function is using it as unit of account. By comparing the amount in dollars spent on running a car yearly to annual earnings instead of keeping track in terms of gasoline cost and quarts of oil shows that money has been used as a unit of account.
This means that the amount of gasoline gallons bought and quarts of oil has been essentially replaced by the cost of these purchases and hence avail is the power to use money as a unit of account
Answer:
(A) True
Explanation:
Differential cost is the difference between the cost to produce Product O and produce Product P; in this case it’s the additional cost of $13 per pound to produce
So the statement “The differential cost of producing Product P is $13 per pound” is true
To oranges juice that's what it's going to turn too
Gross profit is net sales minus the cost of goods sold. It reveals the amount that a business earns from the sale of its goods and services before the application of additional selling and administrative expenses.
