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2 years ago

Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:

Business

1 answer:

HACTEHA [7]2 years ago

5 0

Answer:

- ($51,306)

Explanation:

Given that,

Loss of Contribution = $75,000

Fixed costs will be eliminated by dropping the CUP line = $23,694

Net loss on dropping cup line:

= Loss of contribution - Gain on fixed costs on dropping cup line

= $75,000 - $23,694

= - ($51,306)

Therefore, the net effect on dropping the cup line on net income is $(51,606).

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Vest Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: Dir

torisob [31]

Answer:

If the company buys the component, income will decrease by $225,000.

Explanation:

Giving the following information:

Units= 40,000

The manufacturing cost:

Direct materials $ 75,000

Direct labor 120,000

Variable overhead 45,000

An outside supplier has offered to sell the component for $12.75.

Vest Industries can rent its unused manufacturing facilities for $45,000.

We will take into account only the differential costs.

Make in -house:

Total cost= 75,000 + 120,000 + 45,000= $240,000

Buy:

Total cost= 40,000*12.75 - 45,000= $465,000

If the company buys the component, income will decrease by $225,000.

6 0

2 years ago

The bond has a coupon rate of 6.83 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. A c

Kipish [7]

Answer:

The invoice price for the bond is $1,060.38

Explanation:

Given the following:

PV= Par value = $1,000 ,

CV= Clean Price = $1,049

Coupon Rate per annum = 6.83%

To calculate the Semiannual Coupon Rate= Coupon Rate per annum/2= 3.415%

To calculate Semiannual Coupon= Semiannual Coupon Rate*PV

= 3.415% * $1,000 = $34.15

With an interest accured over 2 months, we calculate it thus:

Accrued Interest = $34.15 * 2/6 = $11.38

To calculate Invoice price:

Invoice Price = CP + Accrued Interest

Invoice Price = $1,049.00 + $11.38

Invoice Price = $1,060.38

3 0

2 years ago

A cash budget will not help identify possible problem times. True False

Firlakuza [10]

The correct answer is False

Explanation:

A cash budget refers to a tool used to predict and control the amount of money that would be spent, this applies to the money that is expected will be spent in a business during a certain time or the money that is expected to be spent for a project. Due to this, in projects, a cash budget is useful to identify possible problems related to the budget or money including possible problem times. According to this, it is false a cash budget will not help identify possible problem times because is useful to predict problems related to money and time.

6 0

2 years ago

Read 2 more answers

Sean works in San Jose, California, but her teammates work in Israel, Germany, and India. Together, they create coding GPS syste

stellarik [79]

Sam / she or he is a part of Firmament

3 0

2 years ago

PLZZ HELP IN IN A TEST!! 20 POINTS AND BRAINLIEST FOR FIRST!

Leokris [45]

Answer:

A. planning

8 0

2 years ago