Fanning Corporation, which makes and sells 81,000 radios annually, currently purchases the radio speakers it uses for $30 each. Each radio uses one speaker. The company has idle capacity and is considering the possibility of making the speakers that it needs. Fanning estimates that the cost of materials and labor needed to make speakers would be a total of $28 for each speaker. In addition, supervisory salaries, rent, and other manufacturing costs would be $188,000. Allocated facility-level costs would be $99,100. Required Determine the change in net income Fanning would experience if it decides to make the speakers.

In the rbv are defined as the tangible and intangible assets that a firm controls that it can use to conceive and implement its strategies. answers: management policies

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.

Jallouk corporation has two different bonds currently outstanding. bond m has a face value of $50,000 and matures in 20 years. the bond makes no payments for the first six years, then pays $2,100 every six months over the subsequent eight years, and finally pays $2,400 every six months over the last six years. bond n also has a face value of $50,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. the required return on both these bonds is 10 percent compounded semiannually. what is the current price of bond m and bond n?