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nadezda [96]
2 years ago
9

Merry Toy Company makes toy airplanes. One plane is an excellent replica of the Boeing 737; it sells for $8. Joyous Airlines wan

ts to purchase 15,000 planes at $4 each to give to children flying unaccompanied. Costs per plane are as follows: Direct materials $1.25 Direct labor 2.05 Variable manufacturing overhead 0.50 Variable marketing 0.10 Fixed overhead 0.70 No variable marketing costs would be incurred for the special order. The company is operating significantly below the maximum productive capacity. No fixed costs are avoidable. However, Joyous Airlines wants its own logo and colors on the planes. The cost of the decals is $0.05 per plane, and a special machine costing $2,000 would be required to affix the decals. After the order is complete, the machine would be scrapped. Should the special order be accepted?
a. No, income will decrease by $200.
b. No, income will decrease by $2,500.
c. Yes, income will increase by $250.
d. Yes, income will increase by $600.
e. It doesn't matter; there will be no change in income.
Business
1 answer:
marusya05 [52]2 years ago
6 0

Answer:

C) Yes, income will increase by $250.

Explanation:

normal selling price $8

special order for 15,000 at $4 each

incremental costs per plane:

  • direct materials $1.25
  • direct labor $2.05
  • variable manufacturing overhead $0.50
  • decals $0.05
  • total $3.85 per plane

plus $2,000 in special machine

gain/loss resulting from special order = total revenue - incremental costs per plane - special machine = ($4 x 15,000) - ($3.85 x 15,000) - $2,000 = $60,000 - $57,750 - $2,000 = $250

net profits will increase by $250

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Yvette Bradbury is an account representative at Commerce Savings Bank, earning $45,600 annually, paid semimonthly. She contribut
FrozenT [24]

Answer:

taxable income per pay period = $1,637.50

Explanation:

first we must determine Yvette's pay per period. Since she is paid semimonthly, that means she gets paid twice a month = $42,000 / (12 x 2) = $42,000 / 24 pay periods = $1,750 per pay period

her 401 (k) contributions = $1,750 x 3% = $52.50

her medical premium = $60

taxable income per pay period = $1,750 - $52.50 - $60 = $1,637.50

7 0
2 years ago
Stock in Cheezy-Poofs Manufacturing is currently priced at $80 per share. A call option with a $80 strike and 90 days to maturit
butalik [34]

Answer:

Price                Stock     Options

$70                         -3200     -25600

$80                          0             -25600

$90                          3200      54400

Explanation:

<em>Invested in stock</em>

Number of units acquired = $25,600/80 = 320

Now if price goes down to $70 THEN loss will be

320 × (70-80) = - $3,200

percentage of loss will be  3,200/25,600 × 100 = 12.5%

If price stays at $80, then there will neither be a gain nor a loss

320 × (80-80) = 0

If price goes up to $90, then the gain will be

320 × (90-80) = $3,200

percentage of gain will be  3,200/25,600 × 100 = 12.5%

<em>Invested in option</em>

Number of options purchased = $25,600 / 3.20 = 8000

Now If price goes down to $70 then investor will not exercise option in which case loss will be equal to amount of premium paid which is - $25,600.

percentage of loss = 100%

If price stays at $80 even then investor will not exercise call option in which case loss will be equal to the amount of premium paid which is - $25,600

Percentage of loss = 100% loss

If price goes up to $90 then investor will exercise call option

Gain due to exercise of call option = 8000 × (100 - 90) = 80,000

Net gain = 80,000 - 25,600 = $54,400

Percentage gain = 54,400 / 25,600 = 212.5%

6 0
2 years ago
Wd-40, inc. markets only one product, its namesake chemical lubricant. the company offers the product in several different conta
Genrish500 [490]

WD-40 is considered as having a narrow product mix. Product mix is also known as product assortment. Product mix means the variety and number of product lines the company or business is offering. Product mix is to be improved from time to time as customer changes it needs, so product managers shall create new product lines that meet the needs of the clients.  

5 0
2 years ago
At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease
marusya05 [52]

Answer:

$11,750

$189,750

Explanation:

1: Calculation for the effect of the lease on Café Med's earnings for the first year

Based on the information given we were told that the lease agreement has annual payments of the amount $29,000 which means that Corporation will recognized a rental revenue of the amount $29,000 each year

Now let Compute for the depreciation to be charged on equipment using this formula

Annual depreciation = Cost of equipment / Useful life

Let plug in the formula

Annual depreciation= $207,000 / 12

Annual depreciation= $17,250

Second step is to Compute for Crescent Effect on earnings using this formula

Crescent Effect on earnings = Rental revenue - Depreciation expense

Let plug in the formula

Crescent Effect on earnings= $29,000 - $17,250

Crescent Effect on earnings= $11,750

2. Calculation for the balances in the balance sheet accounts

Using this formula

Equipment balance at the end of 2021 = Cost - Accumulated depreciation

Let plug in the formula

Equipment balance (net) at the end of 2021= $207, 000 - $17, 250

Equipment balance (net) at the end of 2021= $189,750

Deferred lease revenue will be the Rental amounts that was received in advance on 31. DEC.2021 for 2019 year = $29,000

5 0
2 years ago
PLEASE HELP
Ksivusya [100]

3)

Jorge Rodrigues annual salary is:

S=\$48,000

We know that 1 year consists of 12 months, so the gross wage per month can be obtained by dividing the annual salary by 12:

\frac{S}{m}=\frac{48,000}{12}=\$4,000

1 year also contains 52 weeks, so the gross wage per week is obtained by dividing the annual salary by 52:

\frac{S}{w}=\frac{48,000}{52}=\$923

Finally, 1 year contains 26 bi-week periods, so the gross wage per bi-week period is:

\frac{S}{b}=\frac{48,000}{26}=\$1846

4)

In this part, we know that Lexi's salary per month is:

s=\$1600

We know that 1 year consists of 12 months: therefore, the annual salary contains 12 monthly salary, so we can write

S=ns

where

n = 12 is the number of months

S is the annual salary

Substituting s, we find:

S=(12)(1600)=\$19,200

5)

Here the Monthly salary of Ryo is

s=\$2200

So her annual salary is the monthly salary multiplied by 12:

S=ns=(12)(2200)=\$26,400

Then Ryo has been offered a raise of $250 per month, so her new salary per month will be

s'=2200+250=\$2450

Therefore, her new annual salary will be

S'=ns'=(12)(2450)=\$29,400

So, the amount that Ryo will earn more per year is:

\Delta S=S'-S=29,400-26400=\$3000

6)

Being paid salary means that we are paid with a fixed regular payment, usually paid every month.

Being paid by hourly rate instead means that we are paid a fixed amount for every hour of work: therefore, the total monthly salary will depend on the number of hours of work.

Therefore, the main advantages/disadvantages are the following:

- Advantage of being paid salary: the payment is fixed, therefore it is independent on the number of hours worked - so even if one month we work less hours, we still receive the same pay

- Disadvantages: the salary is fixed and cannot be increased by working more - in fact, in the hourly payment, by working more hours it is possible to earn more.

7)

In this problem, the amount of the check in the restaurant is

c=\$340

The customer decides to leave a 20% tip, which corresponds to \frac{20}{100} of the amount of check.

Therefore, we can write the amount of the tip left as

t=\frac{20}{100}c

Simplifying, we get

t=\frac{1}{5}c

And by substituting c = 340, we find the tip left:

t=\frac{1}{5}(340)=\$68

8)

In this problem, Sandra is paid per day.

Her pay per day is

d=\$95

Which means that she is paid 95 dollars per day.

In this month, Sandra has worked for

n = 22 days

Therefore her total earning for this month will be

T=nd

and substituting n = 22 and d = 95, we find:

T=(22)(95)=\$2090

9)

First of all, we have to find the total number of pieces produced by summing the number of pieces produced each day.

For Zinke, the total number of pieces produced is:

n = 54 + 55 + 59 + 62+ 60 =  290

The price per piece produced is

p = $1.60

Therefore, the gross pay is equal to the number of pieces times the price per piece:

P=np=(290)(1.60)=\$464

Then we have to repeat the exercise for Bello. The total number of pieces produced is:

n = 24 + 28 + 30 + 31 + 27 = 140

The price per piece is

p = $2.80

So, the gross pay is:

P=np=(140)(2.80)=\$392

10)

Here the fare for the whole drive was

f = $19.30

However, Steve gave the driver a total of 20$. This means that the tip gave by Steve to the driver is

t=20\$ - 19.30\$ = 0.70\$

Here we are asked to determine if the tip is adequate, generous or not enough. In order to evaluate this, we have to calculate what is the tip in % with respect to the fare.

It is:

\frac{t}{f}\cdot 100 = \frac{0.70}{19.30}\cdot 100 =3.6\%

The tip is 3.6% of the fare: therefore, the tip is not enough (an adequate tip can be considered between 10 and 20 %).

7 0
2 years ago
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