Business, 21.10.2021 05:00, RayQuan115
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $8.00. The new customer is geographically separated from Smooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 87,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price is $12 per unit. Unit cost information is as follows:
Direct materials $3.10
Direct labor 2.75
Variable overhead 1.15
Fixed overhead 1.80
Total $8.80
If Smooth Move accepts the order, no fixed manufacturing activities will be affected because there is sufficient excess capacity.
Required:
a. What are the alternatives for Smooth Move?
b. Conceptual Connection: Should Smooth Move accept the special order?
c. By how much will profit increase or decrease if the order is accepted?
Answers: 3
Business, 21.06.2019 21:40, khynia11
Torino company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. the company paid total cash dividends of $3,500 in its first year of operation. the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:
Answers: 2
Business, 22.06.2019 04:10, jennifer9983
Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.
Answers: 2
Smooth Move Company manufactures professional paperweights and has been approached by a new customer...
History, 14.01.2021 19:40
History, 14.01.2021 19:40
Chemistry, 14.01.2021 19:40
Spanish, 14.01.2021 19:40
Arts, 14.01.2021 19:40
Mathematics, 14.01.2021 19:40
Mathematics, 14.01.2021 19:40