Bradley Inc has the capacity to make 100,00 . windows. Bradley is currently operating at 100 . capacity. The windows usually sell for $20.00 each. Costs for each window follow: Direct materials $ 5.00 Direct labor 3.00 Variable factory overhead 2.00 Fixed factory overhead 4.00 Total $14.00 The Army has offered to buy 10,00 . windows for $12.00 each for barracks. Bradley should:
a. Reject the offer because it currently does not have enough capacity to accept the order.
b. Reject the order because the company will lose $20,00 . on the order.
c. Accept the offer because the company will realize $20,00 . in additional contribution margin.
d. Accept the offer because the company will realize $40,00 . in additional contribution margin.
a
You might also like to view...
All of the following statements about the MOTO sector are true except:
A. compared to general merchandisers, the transition to e-commerce was easier for MOTO firms. B. the MOTO sector is also referred to as the specialty store sector. C. MOTO was the last technological retailing revolution that preceded e-commerce. D. distribution of catalogs is one of MOTO retailers' biggest expenses.
A company that makes marketing decisions by considering consumers' wants and long-run interests, the company's requirements, and society's long-run interest is said to be practicing consumer-oriented marketing
Indicate whether the statement is true or false
In a Gantt chart, the time to complete a project can be estimated by ______.
a. the average of the longest duration for each sequenced activity b. adding the lengths of the longest individual legs of each sequenced activity c. the average of the longest duration for each sequenced activity multiplied by 3 d. adding the lengths of the shortest individual legs of each sequenced activity
Suppose a firm evaluates four independent investments using only capital budgeting techniques that consider the time value of money. Which of the following statements is correct?
A. The company should purchase the one project that has the highest internal rate of return (IRR). B. All of the capital budgeting techniques the company uses should provide the same accept/reject decisions. C. The company should purchase the project that has the shortest traditional payback period (PB). D. The company should purchase the one project that has the highest net present value (NPV); the other projects should not be purchased, even if their NPVs are positive. E. The capital budgeting techniques used by the company will always agree on which project should be ranked as the best one to purchase.