Answer:owowo
Explanation:
Isidore
team skills do not require the ability to communicate effectively.
true or false
Answer:
I think false .
Explanation:
I think so because while working in a team the most important thing that we need is communication skill.
Coronado Industries can produce 100 units of a component part with the following costs: Direct Materials $24000 Direct Labor 8500 Variable Overhead 22000 Fixed Overhead 11000 If Coronado Industries can purchase the units externally for $60000, by what amount will its total costs change
Answer:
Increase of $5,500
Explanation:
The computation of the change in the total cost is given below:
Total cost at the time of producing is
= Direct material + direct labor + variable overhead
= $24,000 + $8,500 + $22,000
= $54,500
And, the cost of purchasing the unit is $60,000
So, there is an increase of
= $60,000 - $54,500
= $5,500
The same should be relevant
Sofia bought a couch that required a $60 down payment and $60 per month for the next eight months. Which type of liability does this describe?
a) a long term liability
b) a non liquid liability
c) a consumer liability
d) a current liability
Assuming Sofia bought a couch that required a $60 down payment. This liability describe:d) a current liability.
What is current liability?Current liability can be defined as the amount owe or debt amount a person is expected to pay back within a stipulated period of time.
Since Sonia is expected to pay $60 per month for eight months which means that Sonia has a debt to pay within a year.
Therefore this liability describe:d) a current liability.
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Check My Work Which of the following moves the pizza market up along a given supply curve? a. a decrease in the price of cheese, an input to pizza b. a kitchen fire that destroys a popular pizza joint c. an increase in the price of pizza d. an increase in the price of root beer, a complement to pizza
Answer: c. an increase in the price of pizza
Explanation:
When there is a movement along the supply curve of a given commodity, it means that the commodity simply went through a price change because the supply curve is meant to depict the quantity supplied at various prices.
If there is an increase in the price of pizza therefore, the pizza market would be moved along the given supply curve.
The other options would cause a shift in the supply and demand curves instead of a movement along.
The managerial accountant at Fast and Mean Manufacturing reported that the organization contains an automated production line to manufacture and produce its products for consumers to enjoy in the marketplace. The managerial accountant reported that the company uses the high-low method to estimate the costs in the new budget. The managerial accountant reported the following information: Month Total Machine-Hours Total Costs January 250,000 $5,500,000 February 248,000 $5,260,000 March 249,000 $5,400,000 April 248,000 $5,220,000 May 238,000 $5,180,000 June 230,000 $5,130,000 Compute the slope of the mixed cost, or the variable cost per unit of activity. Compute the vertical intercept, or the fixed cost component of the mixed cost. What is the mixed cost equation
Answer: See explanation
Explanation:
1. Compute the slope of the mixed cost, or the variable cost per unit of activity.
Variable cost per unit will be:
= (Total Cost at the highest level-l - total cost at the lowest level) / (Highest activity level - lowest activity level)
= (5500000 - 5130000)/(250000 - 230000)
= 370000/20000
= $18.50
2. Compute the vertical intercept, or the fixed cost component of the mixed cost.
The fixed cost will be:
= Total cost - Variable cost
= $5,500,000 - (25,000 × $18.50)
= $5,500,000 - $4,625,000
= $875,000
3. What is the mixed cost equation
Mixed Cost equation will be:
= Fixed Cost + (Variable cost per unit × Total Units of activity )
= 875000 + (18.75 × x)
Y = 875000 + 18.75x
M. Poirot wishes to sell a bond that has a face value of $1,000. The bond bears an interest rate of 11.28% with bond interest payable semiannually. Six years ago, $979 was paid for the bond. At least a 12% return (yield) on the investment is desired. The minimum selling price must be: Enter your answer as follow: 1234.56
Answer:
M. Poirot
The minimum selling price must be:
= $2,065.09.
Explanation:
a) Data and Calculations:
Face value of bond = $1,000
Interest rate = 11.28%
Interest payment = semiannually
Price of bond six years ago = $979
Desired return (yield) rate = 12%
Minimum selling price can be determined as follows:
N (# of periods) 12
I/Y (Interest per year) 12
PV (Present Value) 979
PMT (Periodic Payment) 5.64
Results
FV = $2,065.09
Sum of all periodic payments $67.68
Total Interest $1,018.41
Which of the following is not an appropriate member of an audit committee?
A А.
An academic specializing in business administration
B
The organization's vice president of operations.
С.
A retired executive of a firm that had been associated with the organization
D
The vice president of the local bank used by the organization
Profit Center Responsibility Reporting for a Service Company
Thomas Railroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:
Revenues—N Region $1,039,000
Revenues—S Region 1,281,400
Revenues—W Region 2,205,700
Operating Expenses—N Region 658,400
Operating Expenses—S Region 762,600
Operating Expenses—W Region 1,333,900
Corporate Expenses—Dispatching 518,400
Corporate Expenses—Equipment Management 259,700
Corporate Expenses—Treasurer’s 158,000
General Corporate Officers’ Salaries 349,000
The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer’s Department. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the railroad cars inventories. It makes sure the right freight cars are at the right place at the right time. The Treasurer’s Department conducts a variety of services for the company as a whole. The following additional information has been gathered:
North South West
Number of scheduled trains 5,400 6,500 9,700
Number of railroad cars in inventory 1,200 2,000 1,700
Question Completion:
1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations Thomas Railroad Company Divisional Income Statements For the Quarter Ended December 3:1 North South West Revenues Operating expenses Income from operations before service department charges Service department charges: Dispatching Equipment Management Total service department charges Income from operations
2. What is the profit margin of each division? Round to one decimal place Region North Region South Region West Region Identify the most successful region according to the profit margin Profit Margin 0%6
3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?
a. The method used to evaluate the performance of the divisions should be reevaluated
b. A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets).
c. A better divisional performance measure would be the residual income (income from operations less a minimal return on divisional assets).
d. None of these choices would be Included
e. All of these choices (a, b & c) would be included.
Answer:
Thomas Railroad Company
1. Thomas Railroad Company
Divisional Income Statements
For the Quarter Ended December 3:
Divisions North (N) South (S) West (W)
Revenues $1,039,000 $1,281,400 $2,205,700
Operating expenses 658,400 762,600 1,333,900
Income from operations
before service
department charges $380,600 $518,800 $871,800
Service department charges:
Dispatching $63,600 $106,000 $90,100
Equipment management 39,500 47,550 70,950
Total service
department charges $103,100 $153,548 $161,050
Income from operations 277,500 $365,252 $710,750
2. Profit margin ratio 26.7% 28.5% 32.2%
West's performance is above all the rest, with a profit margin of 32.2%.
3. e. All of these choices (a, b & c) would be included.
Explanation:
Divisions North (N) South (S) West (W)
Revenues $1,039,000 $1,281,400 $2,205,700
Operating expenses 658,400 762,600 1,333,900
Corporate Expenses—Equipment Management 259,700
Corporate Expenses—Treasurer’s 158,000
General Corporate Officers’ Salaries 349,000
Additional data:
Divisions North (N) South (S) West (W) Total
Number of scheduled trains 5,400 6,500 9,700 21,600
Number of railroad cars in inventory 1,200 2,000 1,700 4,900
Corporate Expenses—Equipment Management 259,700/4,900 = $53
Corporate Expenses—Treasurer’s 158,000/21,600 = $7.315
North (N) South (S) West (W) Total
Service departments costs:
Dispatching $63,600 $106,000 $90,100 $259,700
Equipment management 39,500 47,550 70,950 158,000
General Corporate Officers’ Salaries 349,000
Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information:
Production:
Units in process, July 1, 60% complete 18,000 gallons
Units completed and transferred out 141,000 gallons
Units in process, July 31, 45% complete 16,000 gallons
Costs:
Work in process, July 1 $36,000
Costs added during July 398,460
Required:
Prepare a production report.
Answer:
Aztec Inc.
Mixing Department
Production Report
For the month of July
Equivalent units of production:
Beginning work in process 18,000 7,200 (40%)
Units started and completed 139,000 139,000 (100%)
Ending work in process 16,000 7,200 (45%)
Total equivalent units of production 153,400
Cost per equivalent unit:
Costs added during July $398,460
Equivalent units 153,400
Cost per equivalent unit = $2.60 ($398,460/153,400)
Cost to be accounted for:
Work in process, July 1 $36,000
Costs added during July 398,460
Total costs to be accounted for $434,460
Costs assigned:
Beginning work in process = $18,720 (7,200 * $2.60)
Units started and completed = $361,400 (139,000 * $2.60)
Ending work in process = $18,720 (7,200 * $2.60)
Costs assigned to:
Units completed and transferred out:
Beginning work in process costs:
60% completion = $36,000
40% completion = 18,720
Units started and
completed in July = 361,400
Total costs assigned to
units transferred out = $416,120
Cost of ending work in process = 18,720
Total costs assigned = $434,840
Explanation:
a) Data and Calculations:
FIFO Method
Units Degree of Completion
July 1 work in process 18,000 60%
Units transferred out 141,000
July 31 work in process 16,000 45%
Production units available 157,000
Beginning work in process 18,000 40% to be completed
Units started and completed 139,000 100%
Should we, as Americans, be concerned with the economies and standard of living of other countries?
Answer: No the economy and standard of living should be american's focus.
Explanation: If we as american's can't find a solution to our own problem's then it's unlikely that we would be able to solve another countries problems.
No, If we as Americans can't find a solution to our own problem because there exist many differences in the levels of living between various countries.
What is the standard of living?
Standards of living can concern multiple aspects of a population, including satisfaction and productivity. This stands significant because the more significant productivity and happiness exist, the more suitable an economy grows to be as a whole.
The real cause for the dissimilarities in the levels of living between various countries exists the dissimilarity in their levels of national income. The group of national income relies upon the entire volume of an exhibition in the country.
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You're trying to save to buy a new $207,000 Ferrari. You have $57,000 today that can be invested at your bank. The bank pays 6.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car?
Answer:
19.84 years
Explanation:
Number of years = in ( fv / pv) / r
FV = future value
PV = present value
r = interest rate
IN(207000 / 57000) / 0.065
IN (3.631579) / 0.065 = 19.84
At the end of the previous year, a customer owed Days Company $400. On February 1 of the current year, the customer paid $600 total, which included the $400 owed plus $200 owed through February 1st. The journal entry on February 1 is? (Check all that apply.)
Answer:
The relevant journal entry would be:
Date Account Title Debit Credit
February 1 Cash $600
Accounts Receivable $400
Revenue $200
The entire $600 will be debited to cash to show that $600 was received in cash.
$400 will go to Accounts Receivable to cancel out the debt owed by the customer.
Revenue will be credited $200 for the amount owed through February 1st. Revenue is credited when it increases.
Answer: Cash will debited for $600
Accounts receivable will be credited for $400
Service revenue would be credited for $200
Explanation: it’s was the correct answer on the homework
A firm has net working capital of $560, net fixed assets of $2,306, sales of $6,700, and current liabilities of $870. How many dollars worth of sales are generated from every $1 in total assets?
a. $1.70.
b. $2.52.
c. $1.63.
d. $1.87.
e. $2.09.
Answer:
1.79
Explanation:
Net working capital is $560
Net fixed assets is $2,306
Sales is $6,700
Liabilities is $870
Therefore the amount of dollar wort sales generated in every $1 can be calculated as follows
= 560+870
= 1,430
6700/1430+2,306
= 6700/3736
= 1.79×1
= 1.79
In markets where the government imposes an excise tax on unit sales, it also has a tendency to dabble with restrictions on advertising (for example, cigarettes and hard liquor). Do potential (or actual) restrictions on advertising in these markets serve the interest of a government that is interested in maximizing its tax revenue from the sale of these products? Explain your answer
Answer:
I am sorry I don't know sorry again
Capstone Inc. collects 85% of its sales on account in the month of the sale and 15% in the month following the sale. If sales on account are budgeted to be $265,000 for September and $225,000 for October, what are the budgeted cash receipts from sales on account for October? $fill in the blank 1
Answer: $231,000
Explanation:
The budgeted cash receipts in October is:
= (85% * October sales) + (15% * September sales)
= (85% * 225,000) + (15% * 265,000)
= 191,250 + 39,750
= $231,000
Each of Professor A and Professor B at UTD has a private secretary, who can type four letters per hour. The letters are generated at a rate of three per hour by each of the two professors, who have been wondering if they would benefit from pooling the two secretaries. Perform a queuing analysis. What is the average waiting time of a letter in the system.
Answer:
Average waiting time = 7.5 minutes
Explanation:
UTD private secretary can type the number of letters = 4 per hour by each.
By professor, the letter generated = 3 per hour by each
Thus by pooling the average time will be the time that comes by dividing the one hour with total letters in an hour.
Use the below formula:
Average waiting time = Minutes in one hour / total letters
Average waiting time = 60 / 8
Average waiting time = 7.5 minutes
On June 30, 2021, Moran Corporation issued $9.0 million of its 8% bonds for $8.1 million. The bonds were priced to yield 10%. The bonds are dated June 30, 2021. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, by how much should the bond discount be reduced for the six months ended December 31, 202
Answer:
$45,000
Explanation:
Calculation to determine by how much should the bond discount be reduced for the six months ended December 31, 202
First step
Semiannual interest paid on 31.12.2021 = $9,000,000*8%*6/12
Semiannual interest paid on 31.12.2021= $360,000
Second step
Effective interest expense on 31.12.2021 = $8,100,000 * 10% * 6/12
Effective interest expense on 31.12.2021= $405,000
Last step
Bond discount to be reduced for 6 months ended 31.12.2021 = $405,000 - $360,000
Bond discount to be reduced for 6 months ended 31.12.2021=$45,000
Therefore by how much should the bond discount be reduced for the six months ended December 31, 202 will be $45,000
A job was budgeted to require 5 hours of labor per unit at $12.00 per hour. The job consisted of 8,100 units and was completed in 37,500 hours at a total labor cost of $489,800. What is the direct labor rate variance
Answer:
3,800 unfavorable
Explanation:
A job was budgeted at 5 hours of labour unit at $12 for an hour
The job consists of 8,100 units
It was completed in 37,500 hours
The total labor cost is $489,800
The direct labor rate variance can be calculated as follows
= 5×12×8100
= 486,000
486,000-489,800
= -3,800(since It has a negative sign it is unfavorable)
= 3,800 unfavorable
TRUE OR FALSE?WHY?
The goods that the enterprise wants or intends to add to its capital stock are inventories.
Answer:
True
Explanation:
Because for their profit
________ refers to a method of matching a single project of a company to another company with a single business focus in an effort to assign an appropriate level of risk to the project. A. Outside assignment B. Ghosting C. Subjective assignment D. Pure play
The method that should be matched the individual project of a company to the other company having an individual business focus for allocating a risk level is pure-play.
The information related to the pure-play is as follows:
It is to be focused on one business line only.It is distinct from the expanded companies where there are diversify product lines and revenue sources. It determined the beta coefficient because it compared to the other project as an individual business focus.So it cannot be as the outside assignment, ghosting, and subjective assignment.
Therefore we can conclude that the method that should be matched the individual project of a company to the other company having an individual business focus for allocating a risk level is a pure-play.
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Vera PLC uses exponential smoothing with trend to forecast monthly sales. At the end of September, Small Industries PLC hopes to forecast sales for October. The trend through August has been 500 additional unit sales per month (Tt-1). Average sales have been 1800 units per month (St-1). The demand for September was 1780 units (AL). Vera PLC uses alpha (a) - 0.2 and Beta (B)-0.3. Note: This Forecasting Question relates to Questions 65-67. Following the first stage of the trend-adjusted exponential smoothing method, smooth the level of the series and calculate St for Vera PLC. (retain your answer and calculation for:________
a) 1985
b) 2563
c) 2196
d) 2144
e) 2373
Answer:
Option c (2196) is the right solution.
Explanation:
Given:
[tex]\alpha = 0.2[/tex]
[tex]\beta=0.3[/tex]
[tex]A_t=1780[/tex]
By using the formula, we get
⇒ [tex]S_t=\alpha\times A_t+(1-\alpha)\times (S_{t-1}+T_{t-1})[/tex]
By substituting the values, we get
[tex]=0.2\times 1780 + (1 - 0.2)\times (1800+500)[/tex]
[tex]=356+0.8\times 2300[/tex]
[tex]=356+1840[/tex]
[tex]=2196[/tex]
Inventors in developing countries are usually unable to capture the full benefit of their innovations. They therefore tend to devote too few resources to research. Government can address this problem of under-investment in research by (i) increasing restrictions on trade; (ii) establishing a patent system to provide inventors with exclusive control over their inventions for a period of time; (iii) subsidising the purchase of technology from other countries.
a. only (i) is used.
b. only (ii) is used.
c. only (iii) is used.
d. (i), (ii) and (iii) are all used.
Answer:
establishing a patent system to provide inventors with exclusive control over their inventions for a period of time.this way inventors will devout a lot of resources to research.
I hope this helps and sorry if it's wrong
On September 1, Home Store sells a mower (that costs $320) for $620 cash with a one-year warranty that covers parts. Warranty expense is estimated at 8% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $43 in materials taken from the Repair Parts Inventory. Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 3 4 Record the cost of mower sales. Note: Enter debits before credits. General Journal Debit Credit Date Sep 01 Record entry Clear entry View general journal
Answer:
Sep 1
Dr Cash $620
Cr Sales revenue $620
Sep 1
Dr Cost of Goods Sold $320
Cr Inventory $320
Sep 1
Dr Warranty expense $47
Cr Estimated warranty liability $47
Jan 24
Dr Estimated warranty liability $43
Cr Repair parts inventory $43
Explanation:
Preparation of the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs
Sep 1
Dr Cash $620
Cr Sales revenue $620
( To record sale )
Sep 1
Dr Cost of Goods Sold $320
Cr Inventory $320
(To record costs)
Sep 1
Dr Warranty expense $47
Cr Estimated warranty liability $47
($620*8%)
(To record Warranty expense )
Jan 24
Dr Estimated warranty liability $43
Cr Repair parts inventory $43
(To record Warranty incurred)
Answer:
Explanation:
1 September:
Dr Cash $620
Cr Sales revenue $620
(To record cash receipt from mower sale)
1 September:
Dr Cost of goods sold $320
Cr Finished goods inventory $320
(Cost of mower sale recorded)
1 September:
Dr Warranty expense $49.60
Cr Warranty liability $49.60
(To record estimated warranty expense)
24 January:
Dr Warranty liability $43.00
Cr Repair Parts Inventory $43.00
(To record cost of warranty repairs)
Calculation:
Warranty Expense = Sales Revenue × Estimated Warranty Expenses
= $620 × 8%
= $49.60
Joe had made an agreement with Auto Insurance Co. not to use his van for commercial business purposes when he purchased auto insurance. Joe had an accident while delivering pizzas for Bigger Pizza, Inc. For which type of violation will Joe not be covered under his insurance?
Answer:
.Concealment
Explanation:
From the question we are informed about Joe who had made an agreement with Auto Insurance Co. not to use his van for commercial business purposes when he purchased auto insurance. Joe had an accident while delivering pizzas for Bigger Pizza, Inc. the type of violation that Joe will not be covered under his insurance is Concealment.
Concealment can be regarded as omission of information during insurance process, which would definitely has effect on the issuance as well as the rate of an insurance contract. In a case whereby the insurer is unable to get access to the nondisclosed information and the
nondisclosed information is material as regards the decision-making process, nullification of the insurance contract can be carried out by the insurer.
The finished goods inventory on hand on December 31, 2018 was 21,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 20% of the next quarter's anticipated sales. Prepare a production budget for 2019.
Question Completion:
Benet Company has budgeted the following unit sales for 2019 and 2020:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1
Sales units 105,000 60,000 75,000 120,000 90,000
Answer:
Benet Company
Production Budget for 20198:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Sales units 105,000 60,000 75,000 120,000
Ending inventory 12,000 15,000 24,000 18,000
Units available for
sale 117,000 75,000 99,000 138,000
Beginning inventory 21,000 12,000 15,000 24,000
Production 96,000 63,000 84,000 114,000
Explanation:
a) Data and Calculations:
Budgeted unit sales for 2019 and 2020:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1
Sales units 105,000 60,000 75,000 120,000 90,000
Ending inventory 12,000 15,000 24,000 18,000
Units available for
sale 117,000 75,000 99,000 138,000
Beginning inventory 21,000 12,000 15,000 24,000 18,000
Production 96,000 63,000 84,000 114,000
A project manager forgets to assess how national holidays and team member vacations will affect the project’s completion date. Now, because of team member time off, the project delivery will be two weeks late. What flexible planning strategy could the project manager have used to avoid the delay?
The flexible strategy is used to avoid the delay in assessing the external constraints.
The following information regarding accessing external constraints:
It could be thrust upon an organization.It permits for uncovering the things that are beyond the control.The example involved national holidays or sick leaves.If we accessing the external constraints so the delay could be avoided.
So, The other options seem incorrect
Therefore we can conclude that the flexible strategy is used to avoid the delay in assessing the external constraints.
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To reduce delays in considering external restrictions, a flexible technique is employed. The following details about external limitations are available:
It has the potential to be imposed on a company.It enables us to see what we can't see.National holidays and sick leave were used as examples.The delay may be minimized if we used external limitations.It concludes that the flexible technique is employed in order to prevent a delay in considering external limitations.Therefore, "Assessing external constraints" is correct.
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Network externalities: Select one: A. exist when the usefulness of a product increases with the number of consumers who use it B. are created when celebrity endorsements of products lead to a surge in the demand for those products C. can only exist when there are economies of scale D. prevent the dominance of a market by one firm.
Answer:
A. )exist when the usefulness of a product increases with the number of consumers who use it
Explanation:
Network externality can be regarded as a change that occur in benefit as well as in surplus, which is been derived by agent from a good when there is a change in number of other agents that consumes this same type of good. Network externality can as well be regarded as "network effect" this effect is one is that is been had by one user of a good/service on the value of the product with respect to each other people.
It should be noted that Network externalities exist when the usefulness of a product increases with the number of consumers who use it
state and explain five (5) challenges you will encounter as a service marketer.
Explanation:
1.Not finding your market segment
2.Not knowing how to explain the product or dervice you want to sell
Some of the challenges a service marketer faces are:
It being harder to sell a service than a product. The fact that services are perishable. Services being variable which means that others can offer it. Customers being rude. Finding it difficult to find a niche.A service marketer will find it harder to sell a service than a good because services are perishable which means that they cannot be stored like goods. People might therefore not want to buy because they can only use the service once.
Services are also variable which means that several people can offer it at reduced prices which makes it difficult to make a profit. Customers can also be rude.
Some services are also applicable to certain people and finding those people can be difficult to a service marketer.
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If the importer... the bill
Answer:
sorry
Explanation:
Swifty Corporation manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $145 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:
Income would increase by $45000.
Income would increase by $3000.
Income would increase by $145000.
Income would decrease by $3000.
Coronado Industries is using the target cost approach on a new product. Information gathered so far reveals:
Expected annual sales 350000 units
Desired profit per unit $0.35
Target cost $168000
What is the target selling price per unit?
a. $0.48
b. $0.35
c. $0.70
d. $0.83
Answer:
1. Swifty Corporation
If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:
Income would increase by $45000.
2. Coronado Industries:
The target selling price per unit is:
d. $0.83
Explanation:
a) Data and Calculations:
Swifty Corporation:
Variable cost per unit = $100
Sales price per unit = $176
Contribution margin per unit = $76 ($176 - $100)
Fixed manufacturing costs = $480,000
Production and sales units = 10,000 units
Revenue from special order = $145,000 ($145 * 1,000)
Variable costs for 1,000 units 100,000 ($100 * 1,000)
Contribution margin $45,000 ($145,000 - $100,000)
Fixed costs for special order $0
Net income = $45,000
Coronado Industries:
Expected annual sales 350,000 units
Desired profit per unit $0.35
Target cost $168,000
Desired profit = $122,500 (350,000 * $0.35)
Total sales revenue = $290,500 ($168,000 + $122,500)
Target selling price per unit = $0.83 ($290,500/350,000)
