Special Order Poppy has received a special order for 1,000 units of its product at a special price of $125. The product currently sells 18,000 units for $150 and has the following manufacturing costs:
Per unit Direct materials $45
Direct labor 30
Variable manufacturing overhead 35
Fixed manufacturing overhead 25
Unit cost $135
Assume that Poppy has sufficient capacity to fill the order without harming normal production and sales.
a. If Poppy accepts the order, what effect will the order have on the company’s short-term profit?
b. If Poppy accepts the order and fills it completely, what effect will the order have on the company’s short-term profit?
Answers
Answer:
Results are below.
Explanation:
1) Because it is a special offer, and there is unused capacity, we will not take into account the fixed costs:
Effect on income= 1,000*125 - 1,000*(45 + 30 + 35)
Effect on income= $15,000
2) Now, the company doesn't have unused capacity. It only has 500 units in excess. We have to take into account the fixed costs and the original selling price of the units.
Effect on income= 1,000*125 - 1,000*(45 + 30 + 35) - 500*(25 + 25)
Effect on income= -$10,000
Related Questions
THE FOLLOWING INFO IS AVAILABLE FOR BERLIN CORPORATION FOR THE YEAR ENDING 12/31/20. OTHER REVENUE/GAINS= 12700, OTHER EXPENSES/LOSSES=13300, COST OF GOODS SOLD= 156000SALES 592000, OPERATING EXPENSES= 186000, SALES RETURNS= 40000. PREPARE A STEP-BY-STEP INCOME STATEMENT. TAX RATE IS 30 PERCENT
Answers
Based on the information available for Berlin Corporation, the step - by - step income statement would be:
Berlin Corporation.
Income Statement
Sales Revenue $592,000
Less: Sales Return $40, 000
Net Sales $552, 000
Less : Cost of Goods sold ($156, 000)
Gross Profit $396, 000
Less Operating expenses: (186, 000)
Income from operations $210, 000
Other Revenue /Gains 12, 700
Other Expenses /Losses (13, 300) ( 600 )
Income before income taxes $209 ,400
Less: Income tax expense ($62, 820)
Net Income / (Loss) $146,580
What goes into an income statement?An income statement is the financial document that is used to find the amount of net income or loss that a company made in a certain period of time which is often a year or a quarter.
The main components of a net income statement are the revenue, the cost of goods sold, the gross profit, the operating expenses, and the net income.
To find the net income, subtract cost of goods sold and the operating expenses from the sales revenue.
In this case, you need to find the taxes to Berlin Corporation as well:
= Income before taxes x Income tax rate
= 209, 400 x 30%
= $62, 820
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Question 4 of 20
Which person would most likely purchase a life insurance policy with a $1
million death benefit?
Answers
Answer:
the BIG one
Explanation:
monkie
Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. If 300,000 machine hours had been worked last year, what would be the total machine maintenance cost
Answers
Answer:
$570,000
Explanation:
Total machine maintenance cost calculation.
Depreciation expenses $20,000
Operating cost
($275,000 MH × $2). $550,000
Total machine machine maintenance cost $570,000
Therefore, the total machine maintenance cost of the machine is $570,000
The hardest way to make easy money 2.0 
Answers
The hardest way to make easy money 2.0, therefore, involves putting in a lot of effort and hard work to achieve the promised rewards. It's important to carefully weigh the risks and benefits before jumping into any opportunity, and to have a realistic understanding of the amount of time and effort required to make it successful.
The phrase "the hardest way to make easy money" refers to the idea of putting in a lot of effort, time, and resources into a venture that promises quick and substantial returns. This may include taking on a risky investment, gambling, or engaging in shady business practices.
In the 2.0 version of this phrase, the meaning remains the same but the context has shifted to include the modern-day phenomenon of the gig economy. Today, there are many opportunities to make quick money through online platforms like Uber, Airbnb, or TaskRabbit. However, these opportunities often require a lot of work, time, and effort to be successful.
For example, driving for Uber may seem like an easy way to make extra cash, but it requires putting in long hours, dealing with difficult passengers, and dealing with the stress of traffic and road conditions. Similarly, renting out your home on Airbnb requires investing in furniture, cleaning services, and providing a high level of customer service.
Therefore, the hardest way to make easy money 2.0, therefore, involves putting in a lot of effort and hard work to achieve the promised rewards. It's important to carefully weigh the risks and benefits before jumping into any opportunity, and to have a realistic understanding of the amount of time and effort required to make it successful.
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How important are structure and culture compared to the other primary internal considerations for a strategic plan?
Answers
Structure and culture are among the primary internal considerations for a strategic plan. The importance of structure and culture cannot be undermined, as they both play an important role in the success of a company's strategic plan. Although there are other factors that may contribute to the success of a strategic plan, structure and culture are vital. They can be used to leverage the strengths of an organization to achieve its goals.
Structure refers to how an organization is organized and the interrelationships between different departments. A company's structure determines how information flows within the organization, and how employees interact with one another.
An effective structure enables employees to work together efficiently, leading to a higher level of productivity.
Culture refers to the set of values, beliefs, and attitudes that guide the behavior of an organization's members. A positive culture promotes employee engagement, which is essential for achieving an organization's goals.
A company's culture can influence how it deals with problems, how employees communicate with each other, and how they make decisions, among other things.
In conclusion, structure and culture are essential components of an organization's strategic plan.
By investing in a positive culture and a well-defined structure, companies can increase employee engagement, productivity, and ultimately, achieve their goals.
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True or False? A job interview is only for the business to find out about your skills and abilities. Question 15 options: True False
Answers
Answer: False
Explanation: Job interviews and used to get to know you as person as well and in you’re a good for for the job. Not just skills and abilities.
Your email marketing service shuts you down if your spam reports exceed 3%. You are doing a mailing to 900 people. What is the maximum number of spam reports you can get without being shut down?
Answers
Answer:27
Explanation:900 times 3%=27
27 is the maximum number of spam reports you can get without being shut down. Calculation: 900 times 3%=27
What is a spam report?The act of categorizing electronic messages as abusive for reporting to an authority so that they can be handled with is known as spam reporting, which is more appropriately referred to as abuse reporting. Email messages, blog comments, and other types of spam are all examples of reported messages. Users can mark the postings of other users as having abusive material by filing abuse complaints.
Most websites that permit user-generated content either implement a range of user roles that enable users to jointly manage the site's contents or apply some moderation based on abuse complaints, such as concealing or removing the problematic content at a set threshold. By alerting hash-sharing systems to abusive message, the most difficult problems can be resolved.
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Select a local business that doesn’t seem to be thriving. Develop a set of recommendations for how that business could use technology to build its clientele. If possible, present recommendations to the business owner or manager.
Answers
A local business that doesn't seem to be thriving should analyze its planning to identify marketing strategies to create value and attract customers.
How to develop an effective marketing strategy?It is necessary that there is an analysis of the micro and macro environment in which the company is inserted, identifying the needs and desires of consumers, the company's competitive strengths and differentials, to generate value and positioning in the market.
Therefore, it is essential that the company uses the marketing mix and other tools such as SWOT analysis to assist in the strategic direction that will lead it to be successful.
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You happen to be checking the newspaper and notice an arbitrage opportunity. The current stock price of Intrawest is $20 per share and the one-year risk-free interest rate is 8%. A one-year put on Intrawest with a strike price of $18 sells for $3.33, while the identical call sells for $7. Explain what you must do to exploit this arbitrage opportunity. Berk, Jonathan; DeMarzo, Peter; Harford, Jarrad. Fundamentals of Corporate Finance (2-downloads) (Berk, DeMarzo
Answers
Answer:
Using the Put-Call parity principle where the following relationship holds:
Covered Call = Protective Put
Using the above, find the call price:
Call + Strike price / (1 + risk free rate) = Stock price + Put
Call + 18 / (1.08) = 20 + 3.33
Call + 16.67 = 20 + 3.33
Call = 23.33 - 16.67
Call = $6.66
The call option is overvalued at $7 so sell the Call option and buy the Put option and the Stock and borrow $16.67 which is the present value of the Put.
The net gain will be:
= 7 - 6.66
= $0.34
c) “Shadow price is the increase in value created by having one additional unit of a limiting resource at original cost”. Provide a comprehensive real world example of where a shadow price can be calculated with multiple limiting factors and with more than one product. Your answer should be in a form of a short case study roughly 4 or 5 sentences. (5 marks)
Answers
A real world example of shadow pricing would be in a case where a manufacturer produces two product A and B with 2 input such as raw materials and labor.
How is this so?Two products (A & B) are produced through the use of two primary resources: labor & raw materials. To produce one unit of product A, we require roughly an hour's worth (60 minutes) of work time from our available pool.
Also, approximately two pounds worth of our current stockpile must be incorporated into each instance as well. Comparatively speaking, producing one unit from group B takes almost three times that much effort (3 hours' time), but only requires about half as much by weight (a single pound).
Our maximum allowance stands at exactly 60 work-hours across all levels plus another hundred pounds maximum in terms concerning these earthly elements - with that established pricing amounts to a flat rate where five dollars buys us one metric pound whereas ten dollars goes towards hourly wages; so what is their shadow price?
When dealing with limited input availability, the optimal allocation of resources and production process optimization can be achieved using shadow prices. In this regard, it has been determined that labor's shadow price stands at $10 per hour while the shadow price for raw materials is set at $5 per pound.
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The ABC Corporation has the following information. How much is the Cash Flow to Creditors? АВС Coгporation 1,588 Earnings before Interest & taxes Depreciation Beginning net fixed assets Interest paid Net new equity raised Net new borrowing 130 1,650 150 450 110 424 Тахes O$110 O $40 $340 $1,200 $1,650
Answers
Answer: $40
Explanation:
Cash-flow to creditors is that amount of cash that the business paid to creditors during a period. It is calculated by removing the net new borrowings from the interest payments for the period to the creditors.
Cash-flow to Creditors = Interest Paid - Net Borrowing
Cash-flow to Creditors = 150 - 110
Cash-flow to Creditors = $40
HURRY PLEASE
One of our focus questions from the beginning of the course was #3 - "What role does government play and what role should
they play in economics?"
Economic policy is a classic example of government playing a role in economics. Discuss 1 positive role and 1 negative role
that you feel government plays in economics.
Answers
Government is trying to run the economy for this sometimes they cross their limits like they intervene those sectors which are out of their areas. Because of this the sectors are not able to perform with their full potential.
What are the advantages and disadvantages of government involvement in the economy?Low levels of inequality and unemployment are two benefits of the command economy, as is the shared goal of displacing profit with equality as the main driver of production. Command economies have a number of drawbacks, including a lack of innovation and efficiency due to a lack of competition.
The government (1) provides the social and legal framework within which the economy functions, (2) upholds market competition, (3) offers public goods and services, (4) redistributes income, (5) corrects for externalities, and (6) implements specific measures to stabilize the economy.
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Which best describes how consumers may benefit from specialization?
Consumers can only purchase high-quality goods.
Consumers have more price options.
O Consumers receive more sale offers.
O Consumers find products at lower prices.
Answers
In specialization a company have produced the product at different price levels. Consumers have more price options.
What is consumer?A consumer is a person who purchases the goods and or services from the business and is also the ultimate user of the products or services. In specialization the company produces a certain product at many different levels by which they have many price options available which vary according to their customization and quality that can be offered to the consumers and hence the customer can purchase different types of a single product from a single company or Brand.
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During the month, Bavarian Auto Co. received $379,550 in cash and paid out $320,350 in cash. a. Does this information indicate that Bavarian Auto Co. had net income of $59,200 during the month? No
Net income is ✓ the net change in all assets and liabilities from operating (revenue and expense) transactions.
b. If the balance of the cash account is $85,800 at the end of the month, what was the cash balance at the beginning of the month?
Answers
Answer:
No, $59,200 shows only the change in the net cash not in the net income.
The beginning cash balance for the month is $26,600.
Explanation:
a. When the difference of the cash received that is $379,550 and cash paid that is $320,350 is taken it shows only the net change in the cash balance that is $59,200, irrespective of the net income, as this might or might not include some of the revenues or expenses which are in the cash form.
b. When the ending cash balance is $85,800, and the net cash changes is $59,200; then the beginning cash balance will the difference of the ending cash balance and the net cash changes; this will amount to $26,600.
making sound judgment is an example of practicing
Answers
Making sound judgment is an example of practicing is a false statement about sound judgement
What is sound decision-making and judgment?
One's ability to objectively assess situations or circumstances using all relevant information and applying past experience in order to reach a conclusion or make a decision is known as sound judgment and decision-making.
Why is sound decision-making important?Better and deeper decisions are made by thoroughly examining the options and potential outcomes of decisions, including discussions and reflections from others.
Why is judgment important in leadership?Making wise, well-informed decisions that result in the desired outcomes is a leader's most important role in any organization. Nothing else matters when a leader consistently acts with good judgment. Everything else has no bearing on their poor judgment.
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In its first month of operations, Vaughn Manufacturing made three purchases of merchandise in the following sequence:
(1) 340 units at $5,
(2) 440 units at $7, and
(3) 540 units at $8.
Assuming there are 240 units on hand at the end of the period, compute the cost of the ending inventory under
(a) the FIFO method and
(b) the LIFO method.
Vaughn Manufacturing uses a periodic inventory system.
Answers
Answer:
\(Ending\ Inventory = \$1920\) --- FIFO
\(Ending\ Inventory = \$1200\) -- LIFO
Explanation:
Solving (a):
FIFO method
This means that the first items to be listed were sold out and only 240 of the last item is left
This implies that the following units were sold
340 units at $5; 440 units at $7 and (540 - 240) units at $8
So: We're left with
\(Ending\ Inventory = 240 * \$8\)
\(Ending\ Inventory = \$1920\)
Solving (b):
LIFO method
This means that the last items to be listed were sold out and only 240 of the fist item is left
This implies that the following units were sold
540 units at $8; 440 units at $7 and (340 - 240) units at $5
So: We're left with
\(Ending\ Inventory = 240 * \$5\)
\(Ending\ Inventory = \$1200\)
plzzzzzz help me i need help
Answers
When he buys it on credit he is increasing what he owes.
Why do you think employers prefer mesages that are not written like high school and college essays?
Answers
Answer:
I think the main reason employers don't want to see a message in essay form either high school or college is that they don't need all the add nformation to the message. No need for big words and thoughts on how you feel about the matter. They want you to get to the point and not go on and on about the subject.
Employers do not need all of the additions that an essay might have in high school or college, which is the main reason why they do not want to see such a message. The information that is being communicated during the communication process is known as the message. The message creates a link between the sender and the recipient.
Why message is important in business?To convey strong, clear messages about strategy, customer service, and branding in business, communication is crucial. Building a brand requires a company to communicate a consistent, audience-specific message. Internal communication fosters teamwork and collaboration by fostering relationships between employees and managers.
Acronyms and abbreviations are shortened versions of certain words or phrases (s). They aid in making written works simple to read and comprehend. Additionally, they aid in achieving the strict word count goals by preventing word repetition and making the text easier to read.
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Traditional marketing revolves around the 4 Ps:
Answers
Traditional marketing revolves around the 4 Ps, which are Product, Price, Place, and Promotion.
These elements form the foundation of a marketing strategy for businesses.
Product: Refers to the goods or services that a company offers to its customers. It involves defining the features, design, and quality of the product.
Price: Involves determining the cost of the product or service and finding the right pricing strategy that aligns with customer expectations and market conditions.
Place: Focuses on selecting the distribution channels and locations where the product will be available for customers to purchase. It includes decisions related to retail outlets, online platforms, or direct sales.
Promotion: Involves the activities undertaken to promote and create awareness about the product. It includes advertising, public relations, sales promotions, and other marketing communication strategies.
These 4 Ps provide a framework for businesses to analyze and optimize their marketing efforts to meet customer needs, increase sales, and achieve overall business objectives.
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On October 1, 2020 Vaughn Manufacturing issued 4%, 10-year bonds with a face value of $8130000 at 103. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. The entry to record the issuance of the bonds would include a credit of $243900 to Premium on Bonds Payable. credit of $162600 to Interest Payable. credit of $7886100 to Bonds Payable. debit of $243900 to Discount on Bonds Payable.
Answers
Answer: a credit of $243,900 to Premium on Bonds Payable.
Explanation:
The bonds were issued at a premium of 103 so the bond issue price is:
= 8,130,000 * 103/100
= $8,373,900
The premium is therefore:
= Issue price - Face value
= 8,373,900 - 8,130,000
= $243,900
This premium will be credited to the Premium on Bonds Payable account to show that the Bonds were issued for higher than their face value.
describe the two types of brakes fitted on a motor vehicle
Answers
Answer:
brakes
Explanation:
because they brake
Explanation: There are two kinds of brakes that stop your vehicle while driving: disc and drum brakes. almost all vehicles come with emergency brakes and anti-lock brakes.
What is the total number of questions available on the Brainly platform and where can I find them?
Answers
In general, the better candidates for shortening are: Early tasks opposed to later tasks. Later tasks opposed to early tasks. Burst tasks opposed to merge tasks. Merge tasks opposed to burst tasks.
Answers
Answer:
Early tasks opposed to later tasks.
Explanation:
Shortening is a strategic procedure used by project managers to reduce or shorten a project's duration by cutting the duration of critical path tasks.
The rationale behind shortening of a project is basically to have a competitive advantage or edge in the market. In order to compete successfully, project managers are always expected to be spontaneous in bringing their company's goods and services to the market in a flash.
There are two important ways of shortening a particular project, these are;
1. Crashing.
2. Task splitting.
In project management, the longest task is considered to be the most effective and efficient candidate activities to shorten a project's duration.
In general, the better candidates for shortening are early tasks opposed to later tasks. The early start of tasks represents one of the primary date used in project scheduling and it's the earliest date a project manager commences an activity, with respect to all its predecessors and successors.
Early tasks usually involves the use of an easy approach to project kickoff while later tasks uses the difficult approach.
which of the following are found on the balance sheet? (select all that apply.) multiple select question. a. unearned revenue b. dividends c. supplies expense d. accrued expenses payable d.supplies
Answers
There are the found on the balance sheet is supplies expense, accrued expenses payable, and the supplies. Thus, option (c), (d), and (e) is correct.
What is a balance sheet?
The term balance sheet refers to the balance of the debit and the credit balance. There was to include the assets, liabilities, and the equity was the mainly three are the included.
According to the balance sheet was the balance the amount of the debit and the credit. It was the balance sheet is supplies expense, supplies, and the accrued expenses payable. The division on the different category.
As a result, the significance of the balance sheet are the aforementioned. Therefore, option (c), (d), and (e) is correct.
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Royal Decking has five products in its inventory. Information about the December 31, 2021 inventory is below:
Product Cost Sales Price
A $40 $60
B 80 100
C 40 80
D 100 130
E 20 30
A) Selling costs include a sales commission equal to 20% of selling price and shipping costs equal 10% of cost. What per unit value should Royal Decking use for each of its products when applying LCNRV?
B) If Royal has 1,000 units of each product, what should total inventory be on the balance sheet if the company applies LCNRV at the product level?
Answers
Answer:
Royal Decking
A) Per unit value for each of Royal Decking's products, applying LCNRV:
Product Cost Sales Price NRV LCNRV
A $40 $60 $44 ($60 - 12 - 4) $40
B 80 100 $72 ($100 - 20 - 8) $72
C 40 80 $60 ($80 - 16 - 4) $40
D 100 130 $84 ($130 - 26 - 10) $84
E 20 30 $22 ($30 - 6 - 2) $20
B. Total Inventory on the balance sheet is:
$256,000
Explanation:
a) Data and Calculations:
Ending Inventory at December 31, 2021:
Product Cost Sales Price NRV LCNRV Inventory value
A $40 $60 $44 ($60 - 12 - 4) $40 $40,000
B 80 100 $72 ($100 - 20 - 8) $72 $72,000
C 40 80 $60 ($80 - 16 - 4) $40 $40,000
D 100 130 $84 ($130 - 26 - 10) $84 $84,000
E 20 30 $22 ($30 - 6 - 2) $20 $20,000
Total inventory value $256 $256,000
= ($256 * 1,000)
Selling costs = 20% of selling price
Shipping costs = 10% of cost
Answer:
Explanation:
To get the NRV we should proceed with this formula.
Selling price ($60)x(20%) = 12.
60-12 = 48
Cost ($40)x(10%) = 4.
40-4 = 36
Then we do this.
48 + 36 = 84
Then we subtract this number from the original cost number.
84 - 40 = 44
So the NRV of A is 44.
I am not a professor but this is the way I can teach and using this method I got my question correctly. Do the rest yourself following this example.
help me out please i don’t get it
Answers
The formation of a labor union
The impact of induction on coep
Answers
Mimi is granted a license to sell her unique Spirit Pins at local high school lacrosse games. When Mimi prices her pins at $10, she sells 20 pins per game. When she lowers her price to $8, she sells 40 pins. The additional money she earns from dropping her price is known as the __________.
a. Output effect
b. Price effect
c. Marginal revenue
d. Opportunity cost
Answers
Answer:
c
Explanation:
Marginal revenue is the change revenue when quantity sold increases by one unit
Marginal revenue = change in total revenue /change in quantity sold
Mimi's marginal revenue = $10 - $8 = $2
What are the potential benefits of using LED lights over conventional lights and what are the best brands to buy from?
Answers
Answer:
LED lights can help you enhance your gaming or movie-watching setup, decorate your countertops, or just give any room in your home a new aesthetic. Led can also help with monthly expenses. They are eco friendly and consume less power
A very reliable and trusted brand, Philips can be found in most eco friendly homes.
Due to inflation and shortages created by supply chain shortages, the price of Paco Rabanne's Eau de Toilette Spray increased
12.5% during the Xmas 2021 season. If the price elasticity of demand for the perfume is 0.9, what will happen to sales? Show
math.
I need help please
Answers
The sales of Paco Rabanne's Eau de Toilette Spray would fall by 11.25%.
What is the price elasticity of demand?The price elasticity of demand measures the impact of price changes on the quantity demanded of good. When t the price elasticity of demand is less than 1, demand is inelastic.
Percentage change in the quantity demanded = price elasticity x percentage change in price
12.5% x 0.9 = 11.25%
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