Electrobar, a European manufacturer of industrial kitchenware, sells to industrial canteens, restaurants, hotels, and so forth
The company provides a one-year warranty on all products and also allows customers to pay in installments—they pay 50 percent on delivery and the rest as equal installments. This refers to which element in the "trade-relations mix"?
A) price policy
B) conditions of sale
C) distributors' territorial rights
D) exclusive dealings
E) mutual services and responsibilities
B
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A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the company's level of output. This exemplifies its ________ costs
A) overhead B) variable C) target D) total E) unit
Phips Company paid total cash dividends of $150,400 on 32,000 outstanding common shares. On the most recent trading day, the common shares sold at $87. What is this company's dividend yield? (Do not round your intermediate calculations.)
A. 3.60% B. 21.28% C. 5.40% D. 13.18%
Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard QuantityStandard Price or RateStandard CostDirect materials 5.8pounds$0.60per pound$3.48Direct labor 0.5hours$33.50per hour$16.75Variable manufacturing overhead 0.5hours$8.50per hour$4.25During March, the following activity was recorded by the company:•The company produced 2,400 units during the month. •A total of 19,400 pounds of material were purchased at a cost of $13,580. •There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,620 pounds of material remained in the
warehouse. •During March, 1,090 direct labor-hours were worked at a rate of $30.50 per hour. •Variable manufacturing overhead costs during March totaled $14,061. The direct materials purchases variance is computed when the materials are purchased.The labor rate variance for March is: A. $3,270 U B. $4,120 F C. $3,270 F D. $4,120 U
The Melville Corporation produces a single product called a Pong. Melville has the capacity to produce 60,000 Pongs each year. If Melville produces at capacity, the per unit costs to produce and sell one Pong are as follows: Direct materials$15Direct labor$12Variable manufacturing overhead$8Fixed manufacturing overhead$9Variable selling expense$8Fixed selling expense$3The regular selling price for one Pong is $80. A special order has been received by Melville from Mowen Corporation to purchase 6,000 Pongs next year. If this special order is accepted, the variable selling expense will be reduced by 75%. However, Melville will have to purchase a specialized machine to engrave the Mowen name on each Pong in the special order. This machine will cost $9,000 and it will have no use after the
special order is filled. The total fixed manufacturing overhead and selling expenses would be unaffected by this special order. Assume that direct labor is a variable cost.Assume Melville can sell 58,000 units of Pong to regular customers next year. If Mowen Corporation offers to buy the 6,000 special order units at $65 per unit, the annual financial advantage (disadvantage) for Melville as a result of accepting this special order should be: A. $36,000 B. $192,000 C. $47,000 D. $11,000