Answer:
See below.
Explanation:
We can compute the profitability of this special order by accounting for the incremental costs,
Sales (9700 * 47.20) = $457,840
Incremental Variable costs = (18 + 7.30 + 4.50 + 6.90) = $36.7/unit
The incremental variable costs include the $6.9 for modifications and does not include 7.4 which is a part of non incremental fixed costs.
Profits from this special order are as follows,
Sales 457,840
Less:
Variable costs (36.7*9700) 355,990
Incremental Fixed costs 46,700
Profits from this special order 55,150
Since the order has positive contribution and as it yields profits, it should be accepted.
Hope that helps.
Answer:
c. $57,556
Explanation:
Operating Cash flow = Net Income + Non cash Expenses + net Change in working capital
Operating Cash flow = 44,245 + 16,500 + (-12,500 + 9310)
Operating Cash flow = 57,555
$
Sales 361,820
Cost <u> (267,940) </u>
Gross Income 93,880
Depreciation <u> (16,500) </u>
Operating Income 77,380
Interest Expense <u>(9,310)</u>
Income before Tax 68,070
Tax 35% <u>(23,825)</u>
Net Income <u> 44,245 </u>
Answer: Yes, because it is a contract whose terms prevent possible performance within one year
Explanation:
The Statute of Fraud mandates that certain contracts need to be written down. These contracts include the sale of land, amounts involving more than $500 and contracts that have a timeframe of over a year.
Melinda entered into a contract with terms that have to be fulfilled in more than a year. It is therefore under the Statute of Frauds.
Answer:
Georgeland has an absolute but not a comparative advantage in producing clothing.
Explanation:
Absolute advantage is defined as the ability of a firm to produce higher amounts of a product as a result of use of the same resources with other competitors. It is usually bad a result of more efficient production process.
Comparative advantage is the ability of a firm to produce goods at a lower opportunity cost. Therefore they are able to sell at lower price compared to competitors.
Georgeland can produce 18 units of clothe per year while Alland can produce 16 units per year, so Georgeland has absolute advantage.
In producing clothes Georgeland has opportunity cost of 36 units of food which is higher than that of Alland which is 32 units of food. So Georgeland does not have comparative advantage in producing clothes.
Answer:
<em>I can see there are no choices.</em>
Purchase or Lease Stage
Explanation:
The "Hardware Lifecycle" has several stages or phases. These are:<em> Plan, Purchase or Lease, Deploy & Install, Maintenance, Upgrade, Parts & Repair, Extend, Buyback or Trade In and Dispose or Recyle.</em>
The situation above is part of the<em> "Purchase or Lease Stage."</em> This stage <u>allows the person to buy the computer that they wanted.</u> When it comes to the IT hardware, the person can either "Buy" or "Lease." One may choose the second option if he is not yet ready to buy.
So, this explains the answer.
