Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is her forecasted income statement for April, when she expects to produce and sell 3,000 meals. Amount Per Unit Sales revenue $ 18,000 $ 6.00 Costs of meals produced 13,500 4.50 Gross profit $ 4,500 $ 1.50 Administrative costs 2,100 0.70 Operating profit $ 2,400 $ 0.80 Fixed costs included in this income statement are $4,500 for meal production and $600 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.50 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected. Required: a. What impact would accepting this special order have on operating profit? (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)

Answers

Answer 1
Answer:

Answer:

See explanations below

Explanation:

Kind find attached solution. Please note that 3,300 units was used for the alternative.


Related Questions

On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the non-defective merchandise, which is restored to inventory. The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Vander must make on September 14 is (are):
Suppose you invest equal amounts in a risky asset with an expected return of 16% and a standard deviation of returns of 18% and a risk-free asset with an interest rate of 4%. Calculate the standard deviation of the returns on the resulting portfolio.
The balance in accounts receivable at the beginning of 2021 was $690. During 2021, $3,200 of credit sales were recorded. If the ending balance in accounts receivable was $170 and $100 in accounts receivable were written off during the year, the amount of cash collected from customers during 2021 was:
Following is a recent BusinessSoftware Corp. press release: REDMOND, Wash.—March 16, 2016 — BusinessSoftware Corp. today announced that its board of directors have declared a quarterly dividend of $0.18 per share. The dividend will be payable on June 9, 2016, to shareholders of record on May 19, 2016. The ex-dividend date will be May 17, 2016 Prepare the journal entries BusinessSoftware Corp. used to record the declaration and payment of the cash dividend for its 8,600 million shares.
In a press conference, the president of a small country displays a chart showing that GDP has risen by 10 percent every year for five years. He argues that this growth shows the brilliance of his economic policy. However, his chart uses nominal GDP numbers. This chart might be wrong because it: is rare for GDP to increase by the same amount for five years. only uses five years of information. relies on nominal GDP which might have increased because of price increases and not output increases. relies on nominal GDP which might have increased because of output increases and not price increases. If you were a reporter at the press conference, to get a more accurate picture of the country’s economic growth you should ask for the: unemployment rate which reflects changes in international flows. growth rate of real GDP which excludes price changes. growth rate of real GDP which includes price changes. inflation rate which includes price change.

The future value of a dollar 1. increases with lower interest rates
2. increases with higher interest rates
3. increases with longer periods of time
4. decreases with longer periods of time

Answers

Answer:

C. 2 and 3

Explanation:

Note: Options to the question are as follows "A. 1 and 3, B. 1 and 4, C. 2 and 3, D. 2 and 4.

FV = PV(1 + r)^t

Future value of a dollar is the value of a dollar if it earns a certain interest fro a specified time.  Future value increases with an increase in interest rates and time. Conversely, it decreases with a decrease in interest rates and time.

Thus, Option c is correct.

Biochemical Corp. requires $720,000 in financing over the next three years. The firm can borrow the funds for three years at 10.20 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 8.50 percent interest in the first year, 12.90 percent interest in the second year, and 9.75 percent interest in the third year. Assume interest is paid in full at the end of each year.Required:
a. Determine the total interest cost under each plan.
b. Which plan is less costly?

i. Short-tem variable-rate plan
ii. Long-term fixed-rate plarn

Answers

Answer:

Long-term fixed-rate plan-$220,320.00  

Short-term variable-rate plan-$224,280.00  

The long-term fixed-rate plan is less costly as it has a lower interest expense

Explanation:

Total interest under the first plan=principal amount*interest rate*3 years

principal amount is $720,000

interest rate is 10.20%

total interest expense=$720,000*10.20%*3=$220,320.00  

Interest expense under second plan=($720,000*8.50%)+($720,000*12.90%)+($720,000*9.75%)=$224,280.00  

The accounts receivable turnover is computed as __________ divided by __________. sales; accounts receivable sales; average accounts receivable sales; net income accounts receivable; net income

Answers

Accounts receivable turnover is computed by dividing sales revenue by average accounts receivable over a certain period. It gauges a company's effectiveness in extending credit and collecting debts. Higher values of this figure indicate a more proficient collections department and credit policy.

The accounts receivable turnover is a measure used in financial accounting to quantify a firm's effectiveness in extending credit and collecting debts. The formula to calculate this key figure involves the sales revenue divided by the average accounts receivable during a certain period. More specifically, it is computed as Net Credit Sales / Average Accounts Receivable. It's a key indicator of a company's short-term liquidity, with higher values indicating that the business has a more proficient collections department and credit policies.

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Final answer:

The Accounts Receivable Turnover is computed by dividing Sales by Average Accounts Receivable. It shows how quickly a firm collects on its credit sales.

Explanation:

The Accounts Receivable Turnover is a measure used to quantify a firm's effectiveness in extending credit and collecting debts. It is computed by dividing Sales by Average Accounts Receivable. This formula indicates how quickly a company collects on its credit sales.An accrued expense best describes an amount not paid and currently matched with earnings. In business accounting, accrued expenses are those expenses that have been incurred, but not yet paid. These are calculated and recognized in the books, even if the payment hasn't been made. That is why they are also matched with earnings. An example might be wages for employees that have been earned but not yet paid out. Therefore, the correct answer is A. Not paid and currently matched with earnings.For example, if a company has total sales of $100,000 and its average accounts receivable is $20,000, the Accounts Receivable Turnover would be 5 ($100,000 / $20,000). This means the company collects its average receivable 5 times in a given year.

An accrued expense best describes an amount not paid and currently matched with earnings. In business accounting, accrued expenses are those expenses that have been incurred, but not yet paid. These are calculated and recognized in the books, even if the payment hasn't been made. That is why they are also matched with earnings. An example might be wages for employees that have been earned but not yet paid out. Therefore, the correct answer is A. Not paid and currently matched with earnings.

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The period before the trial takes place is called the

Answers

Answer:

Explanation:

Pretrial Stage - discovery process, finding of facts. ... Trial Stage - seating of the jury, testimony on behalf of the plaintiffs and testimony on behalf of the defendants

Answer:

Pretrial Stage - discovery process, finding of facts. ... Trial Stage - seating of the jury, testimony on behalf of the plaintiffs and testimony on behalf of the defendants.

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $348,400 and direct labor hours would be 47,000. Actual manufacturing overhead costs incurred were $304,000, and actual direct labor hours were 52,400. The journal entry to apply the factory overhead costs for the year would include a

Answers

Answer:

Journal Entry

Debit Work-in-Process $388,284

Credit Manufacturing Overhead $388,284

To record the application of factory overhead costs for the year.

Explanation:

a) Data and Calculations:

Estimated factory overhead costs = $348,400

Estimated direct labor hours = 47,000

Predetermined overhead rate = $7.41 ($348,400/47,000)

Actual overhead costs = $304,000

Actual direct labor hours = 52,400

Applied overhead costs = $388,284 (52,400 * $7.41)

b) The overhead applied to the production for the year will be the actual direct labor hours by the predetermined overhead rate.  This yields a cost that is greater than the actual overhead costs, which means that the manufacturing overhead was overapplied.  The cause of this situation is the number of actual direct labor hours worked vis-a-vis the actual overhead costs and the predetermined rate.

You plan to buy a $250,000 home with a 20% down payment. The bank you want to finance the loan through suggests two options: a 15-year mortgage at 4.25% APR and a 30-year mortgage at 5% APR. What is the difference in monthly payments between these two options?

Answers

Answer:

A 15-year mortgage monthly payments is: $1,496.5

A 30-year mortgage monthly payments is: $1,060.1

=> The difference of monthly payment between the two options is: $436.4 ( $1,496.5 - $1,060.1) where the monthly payment of the option of 15-year mortgage is higher.

Explanation:

The borrowed amount in both options is : $250,000 * 80% = $200,000;

* A 15-year mortgage monthly payments is:

We have (1+APR) = ( 1 + Monthly Interest rate)^12 <=> 1.0425 = ( 1 + Monthly Interest rate)^12 <=> Monthly Interest rate = 0.3475%;

Amount of payment periods = 15 * 12 = 180

=> Monthly payment = (200,000 * 0.3475%) / [ 1 - 1.003475^(-180) ] = $1,496.5

* A 30-year mortgage monthly payments is:

We have (1+APR) = ( 1 + Monthly Interest rate)^12 <=> 1.05 = ( 1 + Monthly Interest rate)^12 <=> Monthly Interest rate = 0.4074%;

Amount of payment periods = 30 * 12 = 360

=> Monthly payment = (200,000 * 0.4074%) / [ 1 - 1.004074^(-360) ] = $1,060.1