The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $457 and that would increase the direct materials cost per bracelet by $7. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity.

Answers

Answer 1
Answer:

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:

  • direct materials $143
  • direct labor $90
  • manufacturing overhead $31
  • total $264

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)

  • direct materials $3,900
  • direct labor $2,340
  • variable overhead $208

- special machine                              ($457)  

profit from special order                  $2,637


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The Discount on Bonds Payable account is: A. A liability. B. A contra liability. C. A contra expense. D. An expense. E. A contra equity.

Answers

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.

Final answer:

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.

Explanation:

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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U.S. residents accounted for over 75 percent of cruise ship passengers, and U.S. ports had 8 million passengers leaving on cruises in 2004. The growth in cruise travel was phenomenal after the terrorist attacks on September 11, 2001. According to a situational analysis, this event created an _____ for the industry.

Answers

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.

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c) race.
d) color.
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Answers

Answer: Political Preference

Explanation: You cannot judge anyone based on their political views.

Dunkin Donuts does a lot of taste testing and research and asks for consumer feedback to determine what products to offer. This represents the _____________.

Answers

Final answer:

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.

Explanation:

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.

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Tresnan Brothers is expected to pay a $1.60 per share dividend at the end of the year (i.e., D1 = $1.60). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 5%. What is the stock's current value per share? Round your answer to the nearest cent.

Answers

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,

  • D1 is the dividend expected for the next period
  • r is the required rate of return
  • g is the growth rate in dividends

P0 = 1.6 / (0.05 - 0.03)

P0 = $80.00

Marion Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2018. There were no dividends declared in 2017. The board of directors declares and pays a $65,000 dividend in 2018. What is the amount of dividends received by the common stockholders in 2018

Answers

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