BUSINESS COLLEGE

Kitchens Sales Inc. is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers: Direct materials $554 Direct labor 364 Variable manufacturing support 56 Fixed manufacturing support 120 Total manufacturing costs 1,094 Markup (50%) 547 Targeted selling price $1,641 Kitchens Sales inc. has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $66 per unit. The average marketing cost of Kitchens Sales product is $173 per order. Other than price, what other items should Kitchens Sales consider before accepting this one-time-only special order

Answers

Answer 1
Answer:

The following information should be considered:

  • Costs not considered to calculate the minimum acceptable price of a one-time-only special order are fixed manufacturing support of $120 per unit and marketing cost of $173 per order.
  • The reason behind this is that there is excess capacity available to Kitchens Sales Inc.
  • Hence, fixed mfg. support cost would continue to incur even if the special order from Louis Cifer is not accepted by Kitchens Sales Inc.
  • Similarly, since the order from Cifer is a one time special order,
  • Therefore, there is no need to incur any marketing cost separately.
  • Both these above costs are not relevant while arriving at the decision of computing minimum price of this order.

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Answer 2
Answer:

Answer:

1. Is it an order outside normal market.

2.other orders at the going price.

Explanation:

Decision making in managerial accounting should focus on both the quantitative (dollars) and qualitative (other factors) effects of a decision.

Kitchens Sales Inc. should also consider if it is an order outside the normal market for cherry cabinets.Reducing prices in Normal Market in an attempt to unload spare capacity may lead to a fall in market price.

Also they should consider if accepting the special order may prevent company from accepting other orders that may be obtained during the period at the going price.

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Which of the following factors has the LEAST influence on an individual’s core belief system? a. Physical appearance c. Religious background d. Family upbringing e. Life experiences Personality
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If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred

Answers

Answer:

$117,000

Explanation:

Manufacturing overhead is also known as the production overhead. It can be estimated by the adding the variable manufacturing overhead to the fixed manufacturing overhead. Therefore:

Fixed manufacturing overhead is equivalent to the cost of the fixed units (i.e. 15,000 units) = $4*15000 = $60000

Variable manufacturing overhead is equivalent to the cost of the variable units (i.e. 19000 units) = $3*19000 = $57000

Total manufacturing overhead = $60000 + $57000 = $117000

In an attempt to obtain listings, a broker visits sellers in a particular neighborhood and tells them that property values will soon decline due to a recent influx of minority home buyers. This tactic is _________.

Answers

Answer:

The correct answer is letter "D": illegal.

Explanation:

Blockbusting is the illegal practice by which real estate brokers spread the word among homeowners of a given area that the price of their properties is undervalued because of any false reason made up by the broker in an attempt of having owners to sell their houses so the broker can have more listings.  

As a result of blockbusting, the price of houses decline. The license of brokers engaged in this activity is subject to disciplinary action.

Select each concept with its best description by selecting its letter in the dropdowns. Focuses on quality throughout the production process. Flexible product designs can be modified to accommodate customer choices. Every manager and employee constantly looks for ways to improve company operations. Reports on financial, social, and environmental performance. Inventory is acquired or produced only as needed.Just-in-time manufacturing 2. Continuous improvements 3. Customer orientation 4. Total quality management 5. Triple bottom line

Answers

Answer:

Selection of Concept with its Best Description:

Concept                                      Best Description

4. Total quality management    Focuses on quality throughout the

                                                   production process

3. Customer orientation            Flexible product designs can be modified                            

                                                   to accommodate customer choices.

2. Continuous improvements   Every manager and employee constantly

                                                   looks for ways to improve company

                                                   operations.

5. Triple bottom line                  Reports on financial, social, and                                    

                                                   environmental performance.

1. Just-in-time manufacturing    Inventory is acquired or produced only

                                                   as needed.

Explanation:

1. Just-in-time manufacturing reduces manufacturing flow times and suppliers' and customers' response times.  The purpose is to reduce waste and continuously improve operations.

2. Continuous improvement is a business approach that focuses on incremental or breakthrough improvement of processes, services, or products.

3. Customer orientation: An organization that has customer orientation focuses on the customer first and tries to satisfy the customer before meeting its own needs.

4. Total quality management: This is a management strategy whereby all members of the organization improve customer services, processes, products, and organizational culture in order to achieve long-term success.

5. Triple bottom line (TBL): To create greater business value, some organizations adopt the TBL performance evaluation framework, with a focus on social, environmental (or ecological) and financial performance.

Suppose the target range for the federal funds rate is 1.5 to 2 percent but that the equilibrium federal funds rate is currently 1.7 percent. Assume that the equilibrium federal funds rate falls (rises) by 1 percent for each $120 billion in repo (reverse repo) bond transactions the Fed undertakes. If the Fed wishes to raise the equilibrium federal funds rate to the top end of the target range, will it repo or reverse repo bonds to non-bank financial firms? How much will it have to repo or reverse repo?

Answers

Answer:

24 billion in repo.

Explanation:

1.7-1.5=0.2%

If 1% fall =120 billion in repo.

0.2% fall = ? billion in repo

(0.2%*120) / 1% = 24.

24 billion in repo.

In the situation described in the above question, suppose that the Central Bank of Vietnam decides to keep the nominal dong-dollar exchange rate constant indefinitely. Given whatDEP Inc. has determined about the trend in the real exchange rates and assuming that the rate of inflation in the rest of the world remains unchanged, what should one expect to happen to the rate of inflation in Vietnam over the next several years compared to the past?

Answers

Options:

a.The rate of inflation will rise.

b.The rate of inflation will decline.

c.The rate of inflation will remain unchanged.

d.The rate of inflation may rise or decline

Answer:b.The rate of inflation will decline.

Explanation:Fixed exchange rate is a term used in Economics to describe the "pegging" or fixes the amount to which its own currency will trade with a popular currency like the United States Dollar. This will give investors,importers and exporters more stability and confidence as they will not be scared of indiscriminate fluctuations. WITH THIS CONFIDENCE THE RATE OF INFLATION WILL DECLINE AS INVESTORS WILL NOT BE UNDER PRESSURE TO HOARD GOODS OR REDUCE THE VOLUME OF PRODUCTS RELEASED TO THE MARKET AND CONSUMERS WILL NOT BE UNDER PRESSURE TO BUY.

Alexis Co. reported the following information for May: Part A Units sold 5,000 units Selling price per unit $ 800 Variable manufacturing cost per unit 520 Sales commission per unit - Part A 80 What is the manufacturing margin for Part A? $1,000,000 $1,400,000 $3,600,000 $2,600,000

Answers

Answer:

Hence, the manufacturing margin for Part A is $1,400,000

Therefore, the correct option is B i.e $1,400,000

Explanation:

The manufacturing margin is somewhat same like contribution margin. SO, here we applying the formula of contribution margin.

For computing the manufacturing margin for Part A, the calculation is shown below.

Manufacturing margin = (Selling Price per unit  × Number of units) - (Variable manufacturing cost per unit  × Number of units)

= (5,000 × $800) - ($5000 × $520)

= $4,000,000 - $2,600,000

= $1,400,000

Hence, the manufacturing margin for Part A is $1,400,000

Therefore, the correct option is B i.e $1,400,000

Final answer:

The manufacturing margin for Part A is calculated by subtracting variable costs per unit from the selling price per unit and multiplying the result by the total number of units sold. Therefore, the manufacturing margin for Part A is $1,000,000.

Explanation:

The manufacturing or contribution margin is the difference between the selling price per unit and the variable costs per unit. In this case, the selling price per unit is

$800 and variable manufacturing cost per unit is $520. The sales commission per unit for Part A is $80. Therefore, the manufacturing margin per unit equals $800 - $520 - $80 which is $200. When you multiply this margin per unit by the total units sold which is 5,000 units, we get the total manufacturing margin. Hence, the manufacturing margin for Part A is $200 * 5,000 =

$1,000,000

.

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