The decision to accept additional business should be based on a comparison of the incremental costs of the added production with the additional revenues to be received.
Answer the following statement true (T) or false (F)
True
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All of the following are examples of types of stakeholders except
a. Government b. Suppliers c. Competitors d. Customers
Saulsberry Corporation manufactures numerous products, one of which is called Beta70. The company has provided the following data about this product:?Unit sales90,000?Selling price per unit$60.00?Variable cost per unit$36.00?Traceable fixed expense$2,030,000Required:a. What net operating income is the company earning now on its sales of Beta70?b. Management is considering increasing the price of Beta70 by 10%, from $60.00 to $66.00. The company's marketing managers estimate that this price hike would decrease unit sales by 15%, from 90,000 units to 76,500 units. Assuming that the total traceable fixed expense does not change, what net operating income will Beta70 earn at a price of $66.00 if this sales forecast is correct?c. Assuming that the total traceable fixed expense does not
change, how many units of Beta70 would Saulsberry need to sell at a price of $66.00 to earn the same net operating income that it currently earns at a price of $60.00? (Round your answer up to the nearest whole number.) What will be an ideal response?
Greyson is the president of the Speedway Bicycle Company. He also serves as a director of the Flexible Tire Company. It occurs to Greyson that both companies could benefit from a contract in which Flexible agrees to supply Speedway with tires for its bicycles. If Greyson wishes to negotiate a contract between Speedway and Flexible, which of the following is correct?
A) The contract will be void as a conflict of interest. B) In most states, the contract might be permitted if it is fair and reasonable to both corporations and if Greyson fully discloses all information relating to the transaction. C) The contract is a clear conflict of interest and will be avoidable by either company even with disclosure. D) Greyson must bring in an outside broker to mediate the agreement.
During January 2020 General Fund supplies ordered in the previous fiscal year and encumbered at an estimated amount of $2,000 were received at an actual cost of $2,200. The entry to record this transaction will require a debit to:
A. Expenditures-2019 in the amount of $2,200. B. Expenditures-2020 in the amount of $200. C. Expenditures-2019 in the amount of $200. D. Expenditures-2020 in the amount of $2,200.