A retired auto mechanic hopes to open a rustproofing shop. Customers would be local new-car dealers. Two locations are being considered , one in the center of the city and one on the outskirts. The central location would involve fixed monthly costs of $7,000 and labor, materials and transporation cost $30 per car. The outside location would have fixed monthly cost of $4,700 and labor materials, and transporation cost of $40 per car. Dealer price at either location will be $90 per car

which location will yield the greatest profit if monthly demand is (1) 200 cars ? (2) 300 cars?

At what volume of output will the two sites yield the same monthly profit?

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale. required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse. b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this. c. explain the difference between sale of receivables with recourse as oppose to without recourse.