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Question - Phoenix-based CompTronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42,000 speaker sets:
Sales: $4,032,000
Variable costs: 1,008,000
Fixed costs: 2,736,000
Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $21.60 per set; annual fixed costs are anticipated to be $2,380,800. (In the following requirements, ignore income taxes.)
Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States: If fixed costs remain constant, what must management do to the variable cost per unit? By how much must unit variable cost change?
How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.)
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On January 1, Jenny Company sells goods that have a cost of $400,000 to Denny Inc. for $550,000, with payment due in 1 year. The cash price for these goods is $450,000, with payment due in 30 days. If Denny paid immediately upon delivery, it would..
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1.For each of the following inventory errors occurring in 2013, determine the effect of the error on 2013's cost of goods sold, net income,
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