The management of Musselman Corporation would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. The company's accounting department has supplied the following estimates for the new product: Per UnitPer YearDirect materials$27 Direct labor$16 Variable manufacturing overhead$8 Fixed annual manufacturing overhead $216,000 Variable selling and administrative expenses$3 Fixed annual selling and administrative expenses $72,000 ?Management plans to produce and sell 9,000 units of the new product annually. The new product would require an investment of $1,305,000 and has a required return on investment of 10%.?The unit target selling price using the absorption costing approach is closest to:
A. $100.50
B. $115.00
C. $86.50
D. $83.33
Answer: A
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Explain an executive summary as a preliminary part. Read and analyze the following executive summary of a report written on the implementation of a secure intranet.
? Braden Inc., a small but growing manufacturing business, has been operating in Indianapolis, Indiana, for ten years. Darren Russell, the president, considered the implementation of a website for the company. He had concerns about the cost to create and maintain an effective site. Russell established a team to study the possibility of setting up a company website at an affordable cost. ? The team conducted research using primary and secondary research methods. Current literature was examined, and a survey was conducted through a Chamber of Commerce membership list of 50 small business owners of various companies in the metropolitan area that had a company website. ? The report discussed the following topics related to the initiation of a company website: (1) benefits to be gained, (2) challenges in development and maintenance, (3) projected costs, and (4) guidelines for getting started. Detailed conclusions of the study can be found in the full report. ? The study concluded that intranets have become extremely popular because of the various benefits they offer. Potential problems of intranets can be addressed with recommended security measures. Braden Inc. should proceed with plans to establish a secure intranet. ? What will be an ideal response?
A purchase invoice of $500 with a trade discount of 10% and credit terms of 2/10, n/30, is not paid within the discount period. A check should be sent for:
a. $500. b. $490. c. $450. d. none of the above.
. What is the best description of divergent thinking?
a. You think differently than the normal way of thinking. b. You follow tangents of thought that lead you away from the starting thought. c. You expand your perspective to generate as many ideas as possible. d. You follow traditional problem-solving methods.
When a seller refuses to deliver goods that are unique, a buyer can obtain specific performance.?
Indicate whether the statement is true or false