At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A foreignwholesaler offers to buy 3,000 units at $25 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming thatBargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting thespecial order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)RevenuesCosts-VariablemanufacturingShippingNet incomeRejectOrder$AcceptOrder$+A$Net IncomeIncrease (Decrease)$SA$

The differential analysis is performed to compare the different alternatives available with the…

Answered: At Bargain Electronics, it costs $30…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nash, Inc. buys 1,100 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $6,000. Nash will group the CDs into three price categories for resale, as indicated below. Group No. of CDs Price per CD 1 300 $5 700 10 100 15 Determine the cost per CD for each group, using the relative sales value method. (Do not round ratios for computational purposes. Round final answers to 2 decimal places, e.g. 5.85.) Group Cost per CD 1 $4 %24 %24 %24
Grixdale Tax Services prepares taxes for individuals. Grixdale offers a simplified pricing model with two alternatives for taxpayers: Standard Deduction (Standard) or Itemized Deductions (Itemized). Price and variable costs for the two services are listed below. Sales price (per return) Variable costs (per return) Standard $190.00 150.00 The annual fixed costs at Grixdale are $507,500. Based on experience, the owner estimates that Standard Deduction returns represent 25 percent of the the firm's business. Itemized $ 530.00 310.00 Required: How many Standard Deduction and Itemized Deduction returns must be filed annually to break even? Standard Deduction returns Itemized Deduction returns Answer is complete but not entirely correct. Break-Even Sales in Units 12,688 2,302
A company inadvertently produced 3,000 defective MP3 players. The players cost $12 each to produce. A recycler offers to purchase the defective players as they are for $8 each. The production manager reports that the defects can be corrected for $10 each, enabling them to be sold at their regular market price of $19 each. The company should a. Correct the defect and sell them at the regular price. b. Sell the players to the recycler for $8 each. c. Sell 2,000 to the recycler and repair the rest. d. Sell 1,000 to the recycler and repair the rest. e. Throw the players away.
A company sells gift baskets for $145.00. The cost to their business for the item is $56.00 with expenses of 33% of the cost. During a clearance sale they sell the baskets at a reduced price of $89.00. Determine the profit or loss resulting from selling the baskets at this clearance price. Question 5 options: loss of $70.52 loss of $14.52 profit of $14.52 loss of $ 33.00
Honda Motor Company is considering offering a $2,100 rebate on its minivan, lowering the vehicle's price from $30,900 to $28,800. The marketing group estimates that this rebate will increase sales over the next year from 39,100 to 56,800 vehicles. Suppose Honda's profit margin with the rebate is $5,090 per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea? Hint: View this question in terms of incremental profits. The cost of the rebate will be $ million. (Round to one decimal place.)
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Your answer is partially correct. Nash Taco Palace sells 320 gift cards at $60 per gift card and 160 of the gift cards are redeemed by year-end. Nash estimates that it will have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List oll debit entries before credit entries. Round intermediate calculations to 4 decimal places, eg. 0.2456 and final answers to 0 decimal places, eg. 5,125) Account Titles and Explanation Unearned Gift Card Revenue Sales Revenue Sales Revenue (Breakage) eTextbook and Media. Debit Credit 9600
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Miles Co. can further process Product B to produce Product C. Product B is currently selling for P60 per pound and costs P42 per pound to produce. Product C would sell for P82 per pound and would require an additional cost of P13 per pound to produce. What is the differential revenue of producing and selling Product C? (Per pound)
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A music store sells new instruments. The store also sells used instruments for people who are willing to give the store part of the sales price. The sale of used instruments, called sales commissions, amount to about one-fourth [25%] of total income. On the firm’s classified income statement under the “Revenue” heading are both New Instrument Sales and Sales Commissions. Do you agree with presentation of these in the Income Statement? Why or why not?

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