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Maurinko [17]
2 years ago
15

Burns Industries currently manufactures and sells 11,000 power saws per month, although it has the capacity to produce 26,000 un

its per month. At the 11,000-unit-per-month level of production, the per-unit cost is $46, consisting of $30 in variable costs and $16 in fixed costs. Burns sells its saws to retail stores for $71 each. Allen Distributors has offered to purchase 4,100 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs. Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least: Multiple Choice $16. $46. $71. $30. qizket
Business
1 answer:
marusya05 [52]2 years ago
8 0

Answer:

Selling price= $30

Explanation:

Giving the following information:

Unitary cost:

Variable= $30

Fixed= $16

Number of units= 4,100

<u>Normally, when there is unused capacity and a new customer asks for a reduced price, the fixed cost should not be taken into account when calculating the selling price. </u>The company benefits from increasing its sales, acquiring a new customer, and perhaps getting some discounts from suppliers in the variable components.

<u>The lower price that the company accepts is the one that equals the unitary variable cost. In this case:</u>

Selling price= $30

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6 0
2 years ago
“E-Commerce is a boon to small scale enterprises, `entrepreneurs and customers”. Explain.
Mumz [18]

Answer:

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Explanation:

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6 0
2 years ago
In analysis of variance, ms between-groups provides a measure of ____.
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4 0
2 years ago
Boris, Carina, and Theo have decided to go into business as a limited partnership importing and selling exotic spices. Boris and
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Answer:

Boris, Carina, and Theo each owe $3 million jointly and severally, so Alina may sue one, two, or all three for the $3 million balance.

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Accordingly, it do not matter whether the partner is active or not active in the business.

Therefore, in the given instance also, even though Theo was not an active partner he shall also be held liable for any damage to any third person because of concerned business.

Thus, correct option is:

Statement B

4 0
2 years ago
4. As of November 1, 1999, the exchange rate between the Brazilian real and U.S. dollar is R$1.95/$. The consensus forecast for
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