Aerotoy Company makes toy airplanes. One plane is an excellent replica of a 737; it sells for $5. Vacation Airlines wants to purchase 12,000 planes at $1.75 each to give to children flying unaccompanied. Costs per plane are as follows: Direct materials $1.00 Direct labor 0.50 Variable overhead 0.10 Fixed overhead 0.90 No variable marketing costs would be incurred. The company is operating
significantly below the maximum productive capacity. No fixed costs are avoidable. However, Vacation Airlines wants its own logo and colors on the planes. The cost of the decals is $0.01 per plane and a special machine costing $1,500 would be required to affix the decals. After the order is complete, the machine would be scrapped. Should the special order be accepted?
A) Yes, income will increase by $300
B) Yes, income will increase by $180
C) No, income will decrease by $1,500
D) No, income will decrease by $180
E) It doesn't matter, there will be no change in income
B
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Under the MACRS system, the same convention that applies in the year of acquisition (e.g., half-year, mid-quarter, or mid-month) also applies in the year of disposition.
Answer the following statement true (T) or false (F)
Development costs related to computer software that is to be sold, leased, or otherwise marketed should be accounted for in which of the following ways?
A) All software development costs should be recorded as R&D expense. B) All software development costs should be capitalized. C) All software development costs should be recorded as R&D expense until technological feasibility is established. D) All software development costs should be recorded in R&D expense until the product is available for general release to customers.
How much was the unit cost per service? (Round your answer to the nearest cent.)
Samson, Inc. reported the following information for the year:
A) $5.71
B) $3.71
C) $2.00
D) $7.71
Communication researcher Charles Soukup (2004) confirmed the sense of identity play, observing that virtual communities enable people to engage in dramatic performance online through ______ communication.
a. new media b. verbal c. nonverbal d. traditional media