Henry Sweet Company currently makes 6-inch candy sticks that it sells for $0.20 each. Henry can make 12-inch candy sticks out of two 6-inchcandy sticks by melting them together, which costs an additional $0.03 per 12-inch stick. Henry can sell the 12-inch sticks for $0.45. Henry hasenough capacity to make 10,000 6-inch candy sticks per month, and enough demand to sell all of the candy sticks it can manufacture, whether 6-inch or 12-inch. Should Henry sell 6-inch or 12-inch candy sticks, and how much additional profit will its decision bring in per month?Multiple ChoiceOOSell 6-inch sticks, additional $100Sell 6-inch sticks, additional $250Sell 12-inch sticks, additional $100Sell 12-inch sticks, additional $250

Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…

Answered: Henry Sweet Company currently makes…

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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Lemuel bought bottles of food supplements at Php 1 800 each. He is planning to sell this at 15% markup on cost. At this selling price and a fixed cost of Php 40 000, how many bottles of food supplement must he sell to be able to breakeven? If he wants to earn a minimum of Php 100 000 by just selling these bottles, how many bottles must he sell?
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Freshly Farms plants 80 acres of Brussels sprouts every spring. Freshly sells its sprouts to a farmers cooperative, which sells them to a wholesaler, which sells them to retailers, which sells them to consumers. The farmers cooperative buys Freshly Brussels sprouts for $0.98 per pound. The cooperative takes a 16% margin on the cooperative's selling price. The wholesaler takes a 16% markup on the wholesaler's cost. The retailer takes a 15% margin on the retailer's selling price. How much does a consumer pay to the retailer for one pound of Freshly Farms Brussels sprouts? (Rounding: penny.) ANSWER IS: 1.59, but HOW is that the answer? Please explain.
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Zachary Fruit Drink Company planned to make 202,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 404,000 cups of frozen concentrate. The standard price of one cup of apple concentrate is $0.23. Zachary actually paid $115,385 to purchase 412,090 cups of concentrate, which was used to make 203,000 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. (Round your answer to 2 decimal places.) c. Compute the standard quantity (number of cups of concentrate) required to produce the containers. d. Compute the materials price variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Price variance" to 2 decimal places.) e. Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Usage variance"…
Sweet - o- licious makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Sweet - o- licious makes a variety of candy, the cost differences are insignificant, and the cases all sell for the same price. Sweet - o- licious has a total capital investment of $11,000,000. It expects to produce and sell 700,000 cases of candy next year. Sweet - o- licious requires a 10% target return on investment. Expected costs for next year are as follows: E (Click the icon to view the costs.) Sweet - o- licious prices the cases of candy at full cost plus markup to generate profits equal to the target return on capital. Read the requirements. Requirement 1. What is the target operating income? (Enter the percentage as a whole number.) Capital investment Target return on investment Target operating income 2$ 11,000,000 10 % 2$ 1,100,000 Requirement 2. What is the selling price Sweet - o- licious needs to charge to earn the target operating income? Calculate the markup…
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