Ace Inc. produces custom widgets. The cost structure for each widget it manufactures is as follows: Direct materials $4.00 per unit
Direct labor $6.00 per unit
Variable manufacturing overhead $2.00 per unit

Allocated fixed manufacturing overhead $10.00 per unit (based on 10,000 units) Beta Corp. offers to sell 10,000 widgets to Ace for $16.00 per unit. The widgets would be of equal or better quality and Beta can deliver 10,000 units with no problem. If Ace accepts the offer, none of its fixed costs will be avoidable.

If Ace accepts the offer and buys 10,000 widgets from Beta:

a. Ace will save $60,000.
b. Ace will spend $60,000 more.
c. Ace will spend $40,000 more.
d. Ace will save $40,000

Time value an iowa state savings bond can be converted to $750 at maturity 5 years from purchase. if the state bonds are to be competitive with u.s. savings bonds, which pay 5% annual interest (compounded annually), at what price must the state sell its bonds? assume no cash payments on savings bonds prior to redemption. ignore taxes.

What are the forecasted levels of the line of credit and special dividends? (hints: create a column showing the ratios for the current year; then create a new column showing the ratios used in the forecast. also, create a preliminary forecast that doesn’t include any new line of credit or special dividends. identify the financing deficit or surplus in this preliminary forecast and then add a new column that shows the final forecast that includes any new line of credit or special dividend.) now assume that the growth in sales is only 3%. what are the forecasted levels of the line of credit and special dividends?

Responsible for setting the goals and planning for the future as well as leading and controlling the work of others. out the decisions of top management. often responsible for various departments such as the production, marketing, and accounting departments. process or function of planning organizing leading and controlling. the resources arranged in an orderly and functional way to accomplish goals and objectives. the company on track and making sure goals are met. for the daily operations of a business. examples of this are supervisors, office managers, and crew leaders. act or process of creating goals and objectives as well as the strategies to meet them. for the daily operations of a business. examples of this are supervisors, office managers, and crew leaders. how the firm is structured and who is in charge of whom. direction and vision