Answered step by step
Verified Expert Solution
Question
1 Approved Answer
SPKY Corporation received a special-order request for 50,000 new speakers at a sales price of $20 each. This is a $20 reduction in the normal
SPKY Corporation received a special-order request for 50,000 new speakers at a sales price of $20 each. This is a $20 reduction in the normal sales price. The variable costs per speaker are $19. The total fixed costs of $100,000 will not change. Which of the following is TRUE? O Management should accept the order if the variable costs per unit and fixed costs in total will not change with the order. Management should accept the order if they have no excess capacity. Management should accept the order if the customers will expect the price decrease as the standard price in the future. O Management should reject the special order because the contribution small. rgin per unit is QUESTION 63 The company desires that the merchandise inventory on hand at the end of each month be equal to 50% of the next month's merchandise sales (stated at cost). All purchases of merchandise inventory must be paid in the month of purchase. Sixty percent of all sales should be for cash; the balance will be on credit. Seventy-five percent of the credit sales should be collected in the month following the month of sale, with the balance collected in the following month. Variable operating expenses should be 10% of sales and fixed expenses (all depreciation) should be $3,000 per month. Cash payments for the variable operating expenses are made during the month the expenses are incurred) In a budget of cash receipts for March, the total cash receipts would be: $8,200. $16,000. $17,800. $20,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started