BUSINESS COLLEGE

Stooge Enterprises manufactures ceiling fans that normally sell for $93 each. There are 340 defective fans in inventory, which cost $59 each to manufacture. These defective units can be sold as is for $23 each, or they can be processed further for a cost of $41 each and then sold for the normal selling price. Stooge Enterprises would be better off by aA. $9,860 net increase in operating income if the ceiling fans are repaired.
B. $23,800 net increase in operating income if the ceiling fans are sold as is.
C. $23,800 net increase in operating income if the ceiling fans are repaired.
D. $9,860 net increase in operating income if the ceiling fans are sold as is.

Answers

Answer 1

Answer:

Answer:

A. $9,860 net increase in operating income if the ceiling fans are repaired.

Explanation:

If the company don't do anything with defective fans, they still occurs manufacturing cost of $20,060 (=$59 * 340)

(1) if the company sell defective units, operating income is -12,240 or loss of $12,240 =(340*$23-$20,060)

(2) if the company process further for a cost of $41 each and then sell for the normal selling price, the operating income is -2,380 loss of $2,380= 340*($93-$41) - $20,060

So if the fans are repaired, the net increase in operation income is $9,860 =(-2,380-( -12,240))

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Answers

Decentralize decision making and facilitate teamwork. The correct answer is option (a).

What is Decentralize decision making?

Any procedure in which decision-making power is dispersed across a broader group is considered to be decentralised decision-making. Additionally, it suggests that lower level bureaucrats, executives, and employees are given more power. This may happen in any institution, regardless of size, from a business to a political body.

On the other hand, decentralising decision-making shortens wait times, enhances the flow and throughput of product development, and makes it possible for quicker feedback and more creative solutions. Higher levels of autonomy are a further, noticeable advantage. In general, it is ideal to make decisions at a decentralised level when they are frequent and time-sensitive. A decision should be centralised if it is rare, not time-sensitive, and includes economies of scale.

To know more about Decision making, visit:

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The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X = $2,276,000 + $50/ unit; Company Z = $1,052,000 + $98/unit. The selling price is $145 per unit for both companies. Required: 1. Calculate the indifference point between the two cost structures, that is, the amount of unit sales that produce exactly the same operating income for Company X and Company Z.

Answers

Answer:

Indifference point= 25,500

Explanation:

Giving the following information:

Company X = $2,276,000 + $50/ unit

Company Z = $1,052,000 + $98/unit

We need to find the indifference point where the two companies provide the same total cost.

We need to equal both cost equations:

2,276,000 + 50x = 1,052,000 + 98x

1,224,000 = 48x

25,500= x

x= number of units

To prove:

Company X = $2,276,000 + $50*25,500= $3,551,000

Company Z = $1,052,000 + $98*25,500= $3,551,000

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Answers

Answer:

Pension liability at December 31, 2017 is ($229,700)

Explanation:

Projected benefit obligation $561,600

Less: Plan assets $331,900

Pension liability at December 31, 2017 -$229,700

Coronado Industries purchased a truck at the beginning of 2017 for $108800. The truck is estimated to have a salvage value of $3000 and a useful life of 132250 miles. It was driven 18000 miles in 2017 and 26000 miles in 2018. What is the depreciation expense for 2017?

Answers

Answer:

The depreciation expense for 2017 is $14,400

Explanation:

Coronado Industries uses the units-of-production depreciation method to calculate Coronado Industries by the following formula:

Depreciation Expense = [(Cost of asset − Residual Value ) x Number of Units Produced]/Life in Number of Units

In the company,

Depreciation Expense per mile = ($108,800-$3,000)/132,250= $0.8

The truck was 18000 miles in 2017, so the depreciation expense for 2017:

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Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Budgeted selling price per unit $ 121 Budgeted unit sales (all on credit): January 7,000 February 7,500 March 11,900 April 14,900 Credit sales are collected: 40% in the month of the sale 60% in the following month The budgeted accounts receivable balance at the end of February is closest to:

Answers

Answer:

The budgeted accounts receivable balance at the end of February is closest to: $4,500.

Explanation:

Prepare a Accounts Receivable Budget for January and February

January February

Balance b/d $0 $4,200

Credit Sales $7,000 $7,500

Cash Received (40%) ($2,800) ($3,000)

Cash Received (60%) $0 ($4,200)

Balance c/d $4,200 $4,500

Conclusion:

Therefore, the budgeted accounts receivable balance at the end of February is closest to: $4,500

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