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2 years ago

Three Point Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA).

Business

1 answer:

Alexandra [31]2 years ago

6 0

Answer:

a) incremental analysis

normal selling price = $39 per ball

variable costs per unit:

variable COGS $22.82
variable S&A $2.18 + $0.77 = $2.95

special order for 10,000 balls at $28

<h2> <u>INCREMENTAL ANALYSIS</u></h2>

without special with special differential

order order amount

sales revenue $0 $280,000 $280,000

COGS $0 $228,200 $228,200

S&A expenses $0 $29,500 $29,500

Net income $0 $22,300 $22,300

b) The special order should be accepted because it increases operating profits by $22,300

c) current margin = $2.23 per ball

sales price to produce net income of $5.16 per ball = $28 + ($5.16 - $2.23) = $30.93 per ball

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Aaron is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current y

Svetllana [295]

Answer:

$325,000

Explanation:

Aaron's salary which has already been substracted from the income of ABC, Inc. is allowable deduction and it will not be added back to the ABC Inc.'s income.

Dividend payment by an S corporation is not allowable for deduction and it will not be deducted from the net income.

Therefore, Aaron's qualified business income is $325,000.

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2 years ago

Presented below are three revenue recognition situations.

Digiron [165]

Answer:

Explanation:

The transaction price in each case would be shown below:

(A) Transaction price - $900,000 and the revenue is recognized at the point of sale or on the date when the sale is made

(B) Transaction price - $720,000 and the revenue is recognized at the point of sale or on the date when the sale is made

(C) Transaction price - Present value should be transaction price i.e $417,600 and the remaining amount $32,400 ($450,000 - $417,600) would be recognized over the 24 months i.e 18 months + 6 months

3 0

2 years ago

Yancey Productions is a film studio that uses a job-order costing system. The company’s direct materials consist of items such a

blondinia [14]

Answer:

$0.67 per direct labor-dollar

Explanation:

Given that,

Direct labor-dollars to support all productions = $8,370,000

Fixed overhead cost = $5,022,000

Variable overhead cost per direct labor-dollar = $0.07

Predetermined overhead rate:

$= Variable\ overhead\ cost\ per\ DL\ dollar+\frac{Fixed\ overhead\ cost}{Direct\ labor-dollars}$

$=0.07+\frac{5,022,000}{8,370,000}$

= 0.07 + 0.6

= $0.67 per direct labor-dollar

8 0

2 years ago

Total fixed costs for Green Planes Inc. are $150,000. Total costs, including both fixed and variable, are $600,000 if 140,0

ki77a [65]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Total fixed costs for Green Planes Inc. are $150,000. Total costs, including both fixed and variable, are $600,000 if 140,000 units are produced.

First, we need to calculate the unitary variable cost:

Unitary variable cost= (total cost - fixed cost) / number on units

Unitary variable cost= (600,000 - 150,000)/ 140,000= $3.21 per unit

Now, we can calculate the total variable cost for 230,000 units:

Total variable cost= 3.21*230,000= $738,300

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2 years ago

A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adj

PolarNik [594]

Answer:

Explanation:

Outstanding number of days is the period over which the loan balance remains unpaid. Since this loan earns 5% interest, required adjusting entry for this company would be to Debit<em> interest expense</em> <em>account</em> and Credit the interest <em>payable account. </em>It is an accounting requirement that all expenses be debited . On the other hand, interest payable is the amount that a company owes a lender and is therefore credited as the corresponding journal entry to the interest expense .

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2 years ago