Business, 22.04.2020 18:27 pravikumar02

Hensely Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on the total cost. Based on annual production costs for 25,000 units of product, computations for the sales price per clock follow.

Unit-level costs $ 240,000

Fixed costs 60,000

Total cost (a) 300,000

Markup (a × 0.25) 75,000

Total sales (b) $ 375,000

Sales price per unit (b ÷ 25,000) $ 15

Required

Hensely has excess capacity and receives a special order for 8,000 clocks for $12 each. Calculate the contribution margin per unit. Based on this, should Hensely accept the special order?

Prepare a contribution margin income statement for the special order.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 11:00

Aprofessional does specialized work that's primarily: degree based. medical or legal. well paying. intellectual and creative

Answers: 2

Answer

Business, 22.06.2019 14:20

Frugala is when sylvestor puts $2,000 into 10-year state bonds and $3,000 into 5-year aaa-rated bonds in steady hand hardware, inc. he buys the four state bonds at a 5 percent interest rate and the three steady hand bonds at a 6.5 percent rate. sylvestor also buys $1,500 worth of blue chip stocks, and $800 worth of stock in a promising new sportswear company that reinvests its earnings in new growth. 1. (a) what is the maturity for each of the bond groups sylvestor buys? (b) the coupon rate? (c) the par value?

Answers: 3

Answer

Business, 22.06.2019 14:30

The state in which the manufacturing company you work for is located regulates the presence of a particular substance in the environment to concentrations ≤ x. recently-released, reliable research endorsed by the responsible federal agency conclusively demonstrates that the substance poses no risks at concentrations up to 5x. your company has asked you to consider designing a new process with a waste discharge stream containing up to 2x of the substance. based on the stated conditions, describe this possible.

Answers: 2

Answer

Business, 22.06.2019 16:00

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?

Answers: 1

Answer

You know the right answer?

Hensely Company, which produces and sells a small digital clock, bases its pricing strategy on a 25...

Questions