Woodmasters Inc. makes tables. The cost to manufacture an unfinished table is $35. The selling price...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Woodmasters Inc. makes tables. The cost to manufacture an unfinished table is $35. The selling price per unfinished unit is $50. Woodmasters has unused capacity that can be used to finish the tables and sell them at $60 per unit. For a finished table, direct materials will increase $2 and direct labor costs will increase $4. Variable manufacturing overhead costs will increase by $6. No increase is anticipated in fixed manufacturing overhead. Which of the following statement is correct? OA. Based on the incremental analysis, the company should sell the products as unfinished units. OB. Suppose the company sells the products as unfinished units, the profit for the company is $13 per unit. OC. Suppose the company sells the products as finished units, the profit for the company is $15 per unit. OD. Comparing with the sales of the products as unfinished units, sales of the products as finished units will make an extra $2 per unit. Woodmasters Inc. makes tables. The cost to manufacture an unfinished table is $35. The selling price per unfinished unit is $50. Woodmasters has unused capacity that can be used to finish the tables and sell them at $60 per unit. For a finished table, direct materials will increase $2 and direct labor costs will increase $4. Variable manufacturing overhead costs will increase by $6. No increase is anticipated in fixed manufacturing overhead. Which of the following statement is correct? OA. Based on the incremental analysis, the company should sell the products as unfinished units. OB. Suppose the company sells the products as unfinished units, the profit for the company is $13 per unit. OC. Suppose the company sells the products as finished units, the profit for the company is $15 per unit. OD. Comparing with the sales of the products as unfinished units, sales of the products as finished units will make an extra $2 per unit.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
The binary erasure channel has two inputs and three outputs as described in figure. The inputs are labeled 0 and 1, and the outputs are labeled 0, 1, and e. A traction a of the incoming bits are...
-
The unsystematic risk of a security is also called its a. b. c. d. perceived risk unique or asset-specific risk market risk fundamental risk
-
As the accountant for Pure-Air Distributing, you attend a sales managers meeting devoted to a discussion of credit policies. At the meeting, you report that bad debts expense is estimated to be...
-
Determine the return on assets (ROA) for Nike, Inc. using the following financial data: Net Income: $400,000 Total Assets: $3,000,000 Question: What is the return on assets (ROA) for Nike, Inc. based...
-
A. What are the primary challenges associated with the regulation AI? Discuss any five with examples from the industry. B. What is the UTAUT model? Discuss the four core determinants of the model....
-
What is the suitable voltage for desalting? What are the effects of increasing and decreasing of the voltage above and below the optimum voltage ?
-
Write a program to print below pattern?
-
Jhon Ltd is a private company, considering an initial investment of $500,000 which generates $100,000 cash inflows for 7 years. Calculate the discount payback period discount rate given is 8%. when
-
A satellite traveling at 8.2 km/s at perigee fires a retrorocket at perigee altitude of 480 km. What delta-v is necessary to reach a minimum altitude of 100 miles during the next orbit?
-
What are the ethical considerations surrounding project governance structures and project leadership responsibilities, particularly in relation to accountability, transparency, and stakeholder trust ?
-
1. What are some ethical or field issues that should be a consideration when collecting qualitative and quantitative data? How could you avoid these in your simulated study? 2. How can you reduce...
-
Boal and Hooijberg ____________. (a) argue against the notion of strategic leadership theory (b) have a theory with lots of research support (c) have a theory emphasizing leadership tensions and...
-
The multiple-level strategic leadership approach ____________. (a) emphasizes leadership in different organizational domains (b) is an obsolete approach to leadership (c) is a face-to-face leadership...
-
Incremental change is ____________. (a) more dramatic than radical change (b) less dramatic than radical change (c) infrequently encountered (d) usually very expensive
Study smarter with the SolutionInn App