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Cranberry has received a special order for 120 units of its product at a special price of $1,800. The product normally sells for $2,300 and
Cranberry has received a special order for 120 units of its product at a special price of $1,800. The product normally sells for $2,300 and has the following manufacturing costs: Per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $630 330 430 530 $1,920 Unit cost Assume that Cranberry has sufficient capacity to fill the order without harming normal production and saleslf Cranberry accepts the order, what effect will the order have on the company's short-term profit? $14,400 decrease O $63,600 decrease $49200 increase $14,400 increase Grover has forecast sales to be $130,000 in February, $142,000 in March, $15 000 n April and 4500 in May. The average cost of oods sold S 70% ofsale on credit and sales are collected 65% in the month of sale, and 35% the month following, what are budgeted cash receipts in March? All ales are on made O$137.800 O$101.300 $98,500 $141,800 Jeremy Inc. produces leather handbags. The production budget for the next four months is: July 5,400 units, August 7,600, September 8,100, October 8,300. Each handbag requires 0.3 square meters of leather Jeremy Inc.'s leather inventory policy is 35% of next month's production needs. If the leather policy is met, what will the July 1 inventory be? O16420 square meters 1170 square meters 5670 square meters O 798.0 square meters Parker Corp., which operates on a calendar year, expects to sell 2,500 units in October, and expects sales to increase 10% each month thereafter. Sales price is expected to stay constant at $17 per unit. What are budgeted revenues for the fourth quarter? $140,675.00 $140,250.00 O$127,5000o O $42,500.00 Castle Corp. produces three products, and is currently facing a labor shortage. The selling price, costs, and labor requirements of the three products are as follows: Product A Product BProduct C 51.00 53.00 42.00 48.00 65.00 Selling price Variable cost per unit Direct labor hours per unit $ 63.00 1.5 Castle has unlimited demand for all its products. Which product/s should Castle Corp produce to maximize profit during the labor shortage? O Product B only O Product A only O Products A, B, and C Products A and B
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