I have no idea how to answer the two questions involved in this problem:
The following total cost data are for Ralston Manufacturing Company, which has a normal capacity per period of 400,000 units of product that sell for $18 each. For the foreseeable future, regular sales volume should continue at normal capacity of production.
|Fixed overhead (Note 1)||880,000|
|Selling expenses (Note 2)||720,000|
|Administrative expense (fixed)||200,000|
1. Beyond normal capacity, fixed overhead cost increases $30,000 for each 20,000 units or fraction thereof until a max capacity of 640,000 units is reached.
2. Selling expenses are a 10% sales commission. Ralston pays only one-half of the regular sales commission rates on any sale of 20,000 or more units.
Ralston's sales manager has received a special order for 48,000 units from a large discount chain a special price of $16 each, FOB factory. The controller's office has furnished the following additional cost data related to the special order:
1. Changes in the product's construction will reduce dire materials $1.80 per unit
2. Special processing will add 25% to the per-unit direct labor costs.
3. Variable overhead will continue at the same proportion of direct labor costs.
4. Other costs should not be affected
The two questions are the following:
a. Present an analysis supporting a decision to accept or reject the special order. Assume Ralston's regular sales are not affected by this special order.
b. What is the lowest unit sales price Ralston could receive and still make a before-tax profit of $39,600 on the special order?
You expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of the next 3 years. You believe the stock will sell for $20 at the end of the third year....Mar 28 2020
According to your text, the most important reason for the reliance on research is that it ultimately:a. reduces accidentsb. saves an organization moneyc. increases emp...Jan 24 2020
Assume that the government imposed a price ceiling on gasoline in order to prevent prices from getting too high. What are the economic implications of this action in the ...Jul 03 2021
What is the basic concern of economics?A.to keep business firms from losing money.B.to prove that capitalism is better than socialism.C.to study the choices people make.D...Jun 07 2021
The most important advantage of discount policy is that the fed can use it to:precisely control the monetary base. perform its role as lender of last resort. control the...Jul 10 2021
1. Do you believe the field of organizational behavior has the potential to become prescriptive as opposed to descriptive? Why or why not? >Apr 28 2020
MY Find the Maclisuri series for using the definition of a Macuri Series [Assume that has a power series expansion Doo show that R01-01 - Int5) X) - Find the associated r...Jun 01 2021
What are the various elements that compose nurse workload? How is nurse workload related to nurse staffing?Jul 09 2020
It is sometimes useful to compute a Thévenin equivalent circuit for a Wheatstone bridge. For the circuit of Figure P3.60,a. Find the Thévenin equivalent resistance see...Jun 19 2020
A study by the CDC has shown that preventive care measures impose sizable positive externalities on others. To keep things simple, in this problem we will study the cons...Nov 26 2019