Answer:
this special order will result in a $2,637 profit, so the company should accept it
Explanation:
special order for 26 gold bracelets
discounted price of $367 per unit
normal production costs:
costs related to the special order
increase in direct materials = $7 per unit, total of $150 per unit
direct labor $90 per unit
variable overhead = $8 per unit
machine used for this project only $457
revenue generated by special order:
total revenue $9,542
- variable costs ($6,448)
- special machine ($457)
profit from special order $2,637
Answer:
B. A contra liability
Explanation:
A contra liability account is an account that is paired with another liability account and used to reduce the liability in that account. The Discount on Bonds Payable, decreases the Value of Bonds.
The 'Discount on Bonds Payable' account is a contra liability. It's used to reduce the balance of the 'Bonds Payable' account. The discount is slowly amortized to interest expense over time.
The Discount on Bonds Payable account is a contra liability. In accounting, contra accounts are used to reduce the balance of their corresponding main accounts. Here, 'Discount on Bonds Payable' is used to reduce the balance of the 'Bonds Payable' account. For example, if a $10000 Bond is issued at a discount for $9500, the 'Bonds Payable' account would show $10000 and the 'Discount on Bonds Payable' would show $500 (which is a contra liability, not a regular liability). Over time, this discount is slowly amortized to interest expense, reducing the balance of the 'Discount on Bonds Payable' account and increasing the carrying value of the 'Bonds Payable' account.
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Answer: External opportunity
Explanation:
External opportunities are legal, political, economical, social, technological, environmental and cultural factors that may benefit an organization. External opportunities are beyond the control the organization.
In the scenario illustrated, the act of terrorism in the United States on 11th September 2001, led to a growth in cruise travel. This is an example of external opportunity as the growth wasn't caused by an internal factor.
b) religion.
c) race.
d) color.
e) political preference.
Answer: Political Preference
Explanation: You cannot judge anyone based on their political views.
Dunkin Donuts' actions of taste testing, research, and consumer feedback represent 'Market Research'. This process helps them collect and analyze data about consumer preferences, trends, and competition, thereby assisting them in making informed product decisions.
In the context of Dunkin Donuts' actions, this represents Market Research. Market Research is the process of gathering and analyzing data about the market, including information about customer preferences, trends, and competing products. For a company like Dunkin Donuts, this helps to ensure that they are meeting consumer demand, staying ahead of trends, and maintaining a competitive edge in the donut and coffee market. For example, they might survey customers about their preferred donut flavors, or test new product offerings in select locations to see how they perform. Based on the feedback, they make decisions on what to offer on a wider scale.
Answer:
The price of the stock today is $80.00
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate is calculated by the constant growth model of the DDM. The price of a stock under DDM is based on the present value of the expected future dividends that the stock will pay. The formula for price under this model is,
P0 = D1 / r - g
Where,
P0 = 1.6 / (0.05 - 0.03)
P0 = $80.00
Answer:
The amount of dividends received by the common stockholders in 2018 is $40,000
Explanation:
Number of shares = 5000 shares
Outstanding shares = 20,000 shares
The board of directors declares and pays a $65,000 dividend in 2018
The amount of dividends received by the common stockholders in 2018
= $65,000 - dividend paid to preferred stocks
Where, dividend paid to preferred stocks = 5,000 × 5% × $100
= $25,000
Therefore, we have;
=$65,000 - $25,000 = $40,000