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hram777 [196]
2 years ago
14

A company has the choice of either selling 1,000 unfinished units as is or completing them. The company could sell the unfinishe

d units as is for $4.00 per unit. Alternatively, it could complete the units with incremental costs of $1.00 per unit for direct materials, $2.00 per unit for direct labor, and $1.50 per unit for overhead, and then sell the finished units for $8.00 each. What should the company do?
Business
1 answer:
professor190 [17]2 years ago
5 0

Answer:

It is more convenient to sell the units unfinished by $500.

Explanation:

Giving the following information:

Units= 1,000

Unfinished:

Selling price= $4.00 per unit.

Complete:

Incremental costs= $1.00 per unit for direct materials, $2.00 per unit for direct labor, and $1.50 per unit for overhead

Selling price= $8.00 each.

We need to calculate the gross profit of each option and choose the more convenient:

Unfinished:

Gross profit= 1,000*4= $4,000

Complete:

Gross profit= 1,000*(8 - 4.5)= $3,500

It is more convenient to sell the units unfinished by $500.

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In two paragraphs, compare secured and unsecured types of credit. Secured sources of credit include title loans and personal loa
grigory [225]

Secure credit is credit that is given with a connection to a piece of collateral, such as a car or a home. This means that, if you were to default on your payments, the lender would be legally entitled to taking possession of the collateral. An example of this is a car loan, which is a loan that is used to purchase a car. On the other hand, an unsecured loan is one that is not protected by any collateral. This means that the lender cannot immediately take your property of you default on the loan. An example of this is a credit card.

In the case of a secured car loan, interests tend to be lower because of the security that the collateral (the car) provides. Moreover, these loans tend to provide interest rates that are fixed, which means that it is easier to plan for this expense and avoid falling behind on payments. The risk for the lender is less with a secured loan, as he is able to take the property and resell it if the borrower is unable to repay the loan. On the other hand, credit card are riskier for the lender (the bank) as they are unsecured, and this means that they are unable to immediately take any property from the borrower who did not repay. Because of this high risk, interest rates also tend to be high.

3 0
2 years ago
Tanner, Inc. incurred a financial and taxable loss for 2018. Tanner therefore decided to use the carryback provisions as it had
jeka94

Answer:

Carry-back should be reported as a benefit

Explanation:

Tanner, Inc. is a company which has suffered a loss in 2018, and they have planned to use carry-back provisions because they generated profit. It is compulsory to report the provision in the 2018 financial statement. Overall, tanner, Inc. must report carry-back profits as a benefit in 2018 financial statement, because of the loss they received in 2018.

8 0
2 years ago
Explain the five steps of the theory of constraints (TOC) process. To what processes might the company in the case study apply T
irga5000 [103]

Explanation:

The theory of constraints (TOC) is a theory whose objective is to identify the most limiting constraint related to a systemic organizational process, that is, to identify the bottleneck that prevents an organization from carrying out its activities effectively and consequently achieving its objectives.

The steps are:

1- Identify: The first step is to identify the most limiting current constraint in the organization.

2- Exploit: In the exploit stage, it means making improvements with the resources available in the identified constraint.

3- Subordinate: In this stage, the review of other organizational activities that may interfere with the identified constraint is carried out, to identify whether there is how to make improvements in the subordinate activities that can guarantee the reduction of the constraint.

4- Elevate: In this stage, actions are implemented to eliminate the constraint if it has not yet been eliminated.

5- Repeat: In the last step, each step of the cycle is monitored so that there is continuous improvement in the elimination of the current constraint or a new constraint, so that the processes are constantly optimized.

TOC is effective in companies that use systemic production processes, as in a manufacture for example, whose stages of the production process are subordinate and one interferes in the quality of the other, which can interfere in the process as a whole.

The theory of constraint offers the continuous improvement of all processes and the elimination of current restrictions and the better identification of possible new restrictions, as well as the best use of organizational resources, which generates for the company greater profitability, less waste and less time delivery, improving the entire organizational process.

6 0
2 years ago
On January 1, Year 1, Bacco Company had a balance of $72,350 in its Delivery Equipment account. During Year 1, Bacco purchased d
Maksim231197 [3]

Answer:

A.

Jan 1 balance 72,350

Add year 1 purchases $22,100

Total $94,450

Deduct the closing balance $69,400

Difference = sold equipment at Net Book Value = $25,050

Add accumulated depreciation to date = $22,000

Cost of equipment sold = $47,050.

B.

Cash flow from investing activities.

Cash received from sale of equipment (the Net book value + Gain in sales) = $30,050

Cash invested in purchase of new equipment -$22,100

Net cash flow from investing activities $7,950

5 0
2 years ago
Hector is philosophically opposed to unions. "Why should I be required to join an organization I don't agree with, or pay a fee
AnnyKZ [126]

Answer:

Open

Explanation:

Open shop arrangement is the term which is defined or described as the office, factory or other kind of business establishment in which the union, which is selected or elected through a majority of the employees, that later act as the representative of all the employees while making the agreements with the employer.

So, in this case, the Hector is against the or opposed ton unions. Therefore, the comments of the Hector states that he is in favor of an open shop arrangement.

3 0
2 years ago
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