Business, 03.11.2020 17:20, ayoismeisalex

3. Assume the same situation as described in (2) above, except that the company expects to sell 34,000 Rets through regular channels next year. Thus, accepting the U. S. Army’s order would require giving up regular sales of 9,000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the U. S. Army's special order?

Answers: 3

Show answers

Answers

The original data is missing, so I looked for a similar question to fill in the blanks. I couldn't find all the information because the questions I found all referred to lower production levels. You should be able to use it an example and just change the values in your question. The question I found involved two different scenarios. In scenario 1, the company has spare capacity and in scenario 2, the company doesn't have spare capacity and must give up regular sales.

production level 30,000 units

production costs at that level:

direct materials $15 per unit = $450,000 direct labor $8 per unit = $240,000 variable manufacturing overhead $3 per unit = $90,000 fixed overhead $9 per unit = $270,000 variable selling expense $4 per unit = $120,000 fixed selling expense $6 per unit = $180,000 total costs per unit $45 = $1,350,000

sales price $50 per unit, profit $5 per unit = $150,000

fixed manufacturing overhead constant between 25,000 - 30,000 units

scenario 1:

due to a recession, sales decrease to 25,000 units:

special order for 5,000 at $42 per unit

additional costs = $10,000 for special machine

without special order with special order

total units sold 25,000 30,000

total revenue $1,250,000 $1,460,000

- variable px costs -$650,000 -$780,000

- fixed ma. overhead -$270,000 -$270,000

gross profit $330,000 $410,000

- variable selling exp. -$100,000 -$115,000

- fixed selling exp. -$180,000 -$180,000

- special machine $0 -$10,000

net profit $50,000 $105,000

profits will increase by $50,000 if the special order is accepted

scenario 2:

normal sales levels 30,000 units, Army wishes to purchase 5,000 units:

special order for 5,000 at production costs + $1.80

additional costs = $10,000 for special machine

without special order with special order

total units sold 30,000 30,000

total revenue $1,500,000 $1,434,000

- variable px costs -$780,000 -$780,000

- fixed ma. overhead -$270,000 -$270,000

gross profit $450,000 $384,000

- variable selling exp. -$120,000 -$100,000

- fixed selling exp. -$180,000 -$180,000

net profit $150,000 $104,000

profits will decrease by -$46,000 if the Army's special order is accepted

answered: Guest

There is no graph so we cannot answer

answered: Guest

When odysseus hurts him.the cyclops is drunk and blubbering. he promises to eat odysseus last of all the men as an expression of gratitude for the wine. odysseusand his men tie themselves to the undersides of the cyclops' sheep/rams so they can escape when the cyclops lets the animals out to graze.: )

Other questions on the subject: Business

Business, 21.06.2019 21:00, skgoldsmith

Symantec corp., located in cupertino, california, is one of the world's largest producers of security and systems management software. the company's consolidated balance sheets for the 2009 and 2008 fiscal years included the following ($ in thousands): current assets: receivables, less allowances of $21,766 in 2009 and $24,089 in 2008 $ 838,010 $ 758,700 a disclosure note accompanying the financial statements reported the following ($ in thousands): year ended 2009 2008 (in thousands) trade accounts receivable, net: receivables $ 859,776 $ 782,789 less: allowance for doubtful accounts (8,938) (8,990) less: reserve for product returns (12,828) (15,099) trade accounts receivable, net: $ 838,010 $ 758,700 assume that the company reported bad debt expense in 2009 of $2,000 and had products returned for credit totaling $3,230 (sales price). net sales for 2009 were $6,174,800 (all numbers in thousands).required: what is the amount of accounts receivable due from customers at the end of 2009 and 2008? what amount of accounts receivable did symentec write off during 2009? what is the amount of symentec’s gross sales for the 2009 fiscal year? assuming that all sales are made on a credit basis, what is the amount of cash symentec collected from customers during the 2009 fiscal year?

Answers: 3

continue

Business, 22.06.2019 20:20, abbz13

Which statement is not true about a peptide bond? which statement is not true about a peptide bond? the peptide bond has partial double-bond character. the carbonyl oxygen and the amide hydrogen are most often in a trans configuration with respect to one another. rotation is restricted about the peptide bond. the peptide bond is longer than the typical carbon-nitrogen bond.

Answers: 2

continue

Business, 22.06.2019 21:00, lathwkuster

Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. long-run economic growth is unlikely to be sustainable because of finite natural resources. in the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. finding alternatives to natural resources will be very important to long-term economic growth. in the modern economy, human and physical capital are generally less important in productivity than natural resources. in the 19th century, countries with the highest per capita gdp were nearly always abundant in minerals and productive farming land.

Answers: 1

continue

Business, 22.06.2019 21:10, kalawson2019

You own a nonunion company with 93 nonexempt employees. all of these employ- ees pack books into boxes for shipment to customers throughout the united states. because of wide differences in performance, you have decided to try performance appraisal, something never done before. until now, you have given every worker the same size increase. now you want to measure performance and reward the best performers with bigger increases. without any further information, which of the five types of appraisal formats do you think would be most appropriate? justify your answer. do you anticipate any complaints, or other comments, from employees after you implement your new system?

Answers: 1

continue

Do you know the correct answer?

3. Assume the same situation as described in (2) above, except that the company expects to sell 34,0...