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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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A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $9,000 indicat

noname [10]

Answer:

B) $4,200; $4,800

Explanation:

total delivery expense = $9,000

Dept. Y Dept. X

direct expenses $1,000 $0*

indirect expenses ($8,000 x 40%) ($8,000 x 60%)

total delivery expenses $4,200 $4,800

*Since no direct delivery expenses were generated by Dept. X, no amount should be allocated. Indirect expenses are allocated based on the percent generated by each department.

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2 years ago

Indicate whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbindin

tamaranim1 [39]

Answer:

A price ceiling is a bar on the legal maximum price a commodity can be sold for while a price floor is the least legal price a commodity can go for.

The price ceiling is always greater than the price floor in this case it is not so, hence the price floor is not binding to the price ceiling.

the statements below is analyzed under price ceiling and price floor according to whether it is binding or nonbinding.

Explanation:

1. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so.

Statement one is neither a price ceiling nor a price floor and it is nonbinding

2. The government has instituted a legal minimum price of $1.80 each for donuts.

Statement two is a price floor and it is binding.

3. The government prohibits donut shops from selling donuts for more than $1.10 each.

Statement three is a price ceiling and it is binding.

3 0

2 years ago

Question 9 Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per year. What will be yo

11111nata11111 [884]

Answer:

1103.22%

Explanation:

The value of the investment at the end of the year assuming 250 trading days per year can be computed the future value formula provided below:

FV=PV*(1+daily return)^n

PV=initial investment=$100

daily return=reinvestment rate=1%

n=number of trading days in a year=250

FV=$100*(1+1%)^250

FV=$ 1,203.22

Annual return=( 1,203.22/$100)-1

Annual return=1103.22%

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2 years ago

The income statement for the Shamrock, Inc. for the month ended July 31 shows Service Revenue $17,510, Salaries and Wages Expens

Greeley [361]

Answer:

July 31

Dr Service revenue $17,510

Cr Income summary $17,510

July 31

Dr Income summary $14,230

Salaries and Wages Expense $9,760, Maintenance and Repairs Expense $3,070 Income Tax Expense $1,400

July 31

Dr Income summary 3,280

Cr retained earnings 3,280

July 31

Dr Retained earnings 1,660

Cr Dividends 1,660

Explanation:

Preparation of the closing journal entries

July 31

Dr Service revenue $17,510

Cr Income summary $17,510

(To close revenue account)

July 31

Dr Income summary $14,230

(9,760+3,070+1,400)

Salaries and Wages Expense $9,760, Maintenance and Repairs Expense $3,070 Income Tax Expense $1,400

(To close expense accounts)

July 31

Dr Income summary 3,280

(17,510-14,230)

Cr retained earnings 3,280

(To close net income/loss to retainedearnings)

July 31

Dr Retained earnings 1,660

Cr Dividends 1,660

(To close dividends to retained earnings)

5 0

2 years ago

R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is

aleksandrvk [35]

Answer:

$1,200

Explanation:

total annual holding cost = average number of units in inventory x annual holding cost per unit

average number of units in inventory = 500 units / 2 = 250 units
annual holding cost per unit = $48 x 10% = $4.8

total annual holding cost = $4.80 x 250 units = $1,200

Total annual holding cost per unit includes all the costs associated to keeping a certain inventory level, e.g. warehouse costs like rent and utilities, salaries of hte employees that work in the warehouse, insurance, etc.

6 0

2 years ago