![reesewaggoner8](/avatars/45704.jpg)
reesewaggoner8
05.05.2020 •
Business
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below:
Unit Total
Direct materials $ 25 $ 850,000
Direct labor 6 204,000
Variable manufacturing overhead 3 102,000
Fixed manufacturing overhead 7 238,000
Variable selling expense 2 68,000
Fixed selling expense 6 204,000
Total cost $ 49 $ 1,666,000
The Rets normally sell for $54 each. Fixed manufacturing overhead is $238,000 per year within the range of 25,000 through 34,000 Rets per year.
Assume that due to a recession, Polaski Company expects to sell only 29,000 Rets through regular channels next year. A large retail chain has offered to purchase 7,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have to purchase a special machine to engrave the retail chainâs name on the 7,000 units. This machine would cost $14,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. Determine the impact on profits next year if this special order is accepted.
Solved
Show answers
More tips
- H Health and Medicine Everything You Wanted to Know About Male Circumcision: Its Goals and Effects...
- L Leisure and Entertainment Couchsurfing: A New Way to Travel...
- G Goods and services Which TV is better - LCD or Plasma?...
- S Sport How to Learn to Pull Up on Monkey Bars?...
- L Leisure and Entertainment Scrapbooking: What is it and Why is it Becoming More Popular?...
- C Computers and Internet Where did torrents.ru move to?...
- B Business and Finance Understanding Cash Flow: What It Is and How It Works...
- C Computers and Internet What Are Peers and Seeds in Torrenting?...
- H Health and Medicine 10 Simple Techniques on How to Boost Your Mood...
- G Goods and services How to Choose the Right High Chair for Your Baby?...
Answers on questions: Business
- B Business Which of the following best explains why the game of economics does not have a single goal? a most people do not know what economics is about. b economics is a game without...
- B Business After his presentation, tao was asked a lot of questions about many different slides. since he had over 45 slides, it was time consuming going through them all. what would...
- B Business Ravelo Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembly $ 510,520...
- B Business A lender is considering what terms to allow on a loan. Current market terms are 9 percent interest for 25 years for a fully amortizing loan. The borrower, Rich, has requested...
- B Business An economic model is defined as: Select one: a. a simplified representation of the way in which facts are related. O b. a value judgment. C. data adjusted for irrational actions....
- B Business Adam and Alyssa are equal partners in the PartiPilo Partnership. The partners formed the partnership three years ago by contributing cash. Prior to any distributions. the partners...
- B Business Alma Corp. issues 1,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to: a. Common Stock $16,000. b. Common Stock...
- B Business The indifference policy advocates that dividends are irrelevant. firms are indifferent to dividend policy but stockholders are not. stockholders are indifferent to dividend...
- B Business Van Winkle received stock options from his employer, RiP, Inc. The options entitled Van to purchase 100 shares of RiP common stock at an exercise price of $20 per share. The...
- H History 3 was a policy that allowed colonies local self-rule. (1 Point)...
Ответ:
$69020
Explanation:
Selling price -$54
Incremental selling price =54*(1-0.16)=45.36
Incremental sales - 45.36*7000= 317520
Contribution -
Direct materials = 24*7000 = (168000)
Direct labor = 6*7000 = (42000)
Variable manufacturing = (21000) (3*7000)
Variable selling price = (3500) 2*(1-0.75)
Total contribution = 83020
Additional cost of machine (14,000)
Incremental profit 69,020
Ответ:
D) The broadest group of organization is known as the domain.