What is the highest additional amount loco be willing to pay

Assignment Help Accounting Basics
Reference no: EM132100416

Question - Loco for Cocoa, LLC processes cocoa beans into two products: chocolate powder and chocolate syrup. Demand for chocolate powder is 15,000 units; demand for chocolate syrup is 20,000 units. Loco only has 100,003 beans on hand and will not be able to obtain any more for several weeks. Each bean costs $0.50 from the supplier. Fixed costs are $20,000 per period. The following information is available for each unit of product:


Powder

Syrup

Sales Price

$47.00

$65.00

Direct Material (consists only of cocoa beans)

2.50

4.00

Direct Labor

8.00

9.00

Other Variable Costs

1.50

4.00

What is the highest additional amount Loco would be willing to pay for a cocoa bean?

A. $4.00

B. $6.50

C. $7.00

D. $6.00

E. $7.50

Reference no: EM132100416

Questions Cloud

Why is the CVP analysis so important : CVP (Breakeven analysis) is fairly easy when there is just one product. Why is the CVP analysis so important
Siemens builds a strategy-oriented hr system : Identify at least four strategically relevant HR system policies and activities that Siemens has instituted in order to help human resource management
Explain the background to digital or cryptocurrencies : Cryptocurrency - explain the background to digital or cryptocurrencies and provide an analysis and comparison of the five largest crypto currencies by market
Describe two factors that the company should consider : Describe two factors that the company should consider when deciding whether to hire the temporary laborers
What is the highest additional amount loco be willing to pay : Loco for Cocoa, LLC processes cocoa beans into two products: chocolate powder and chocolate syrup. What is the highest additional amount Loco be willing to pay
Describe the effects of business transactions : Describe the effects of business transactions on the basic accounting elements: assets, liabilities, owners' equity, revenues, and expenses.
What will happen to the company operating income : Assume Alonzo still needs 100,000 units next year. What will happen to the company's operating income if production of the component is outsourced
How you to believe the knowledge will assist : Identify the topic that resonates the most with you personally and in terms of your career objectives. You'll be making your first post on this topic.
Explain the relationship between maslow hierarchy : xplain the relationship between Maslow's Hierarchy of Needs and Herzberg's two-factor model of motivation.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What will be the diluted eps

1. A company's net income is $100,000, and its weighted-average shares outstanding are 20,000. During the year, the company issues 5,000 ESOs at an exercise price of $20.

  Compute the issue price of the bonds on january

On January 1, 2003, Master Corporation issued 100 bonds with a par value of $ 1,000 each. Compute the issue price of the bonds on January 1, 2003

  What is marc and michelles adjusted gross income

What is Marc and Michelle's adjusted gross income? What is Marc and Michelle's taxable income? What is Marc and Michelle's taxes payable or refund due?

  Assume a ten-year life and a 10 internal rate of return

assume polaris invested 2.12 million to expand its manufacturing capacity. assume that these projects have a ten-year

  The views on capitalization of leased assets

What are some of the views on capitalization of leased assets?

  Describe each stakeholder and their concerns

What is the accounting issue relate to this article? Who are the stakeholders? Describe each stakeholder and their concerns. What is motivating the stakeholders to act in this manner and who will be affected by these actions

  For longeis company variable costs are 69 of sales and

for longeis company variable costs are 69 of sales and fixed costs are 208520. managements net income goal is 80214.

  In terms of simple effective annual interest cost

On March 1, 2010, the White Company purchased $400,000 worth of inventory on credit with terms of 1/20, n/60. In the past, White has always followed the policy of making payment one month (30 days) after the goods are purchased.

  Record allowance for doubtful accounts

The ledger of Elburn Company at the end of the current year shows Accounts Receivable $110,000, Sales $840,000, and Sales Returns and Allowances $28,000.

  Why are sales revenue and gross margin so important how do

why are sales revenue and gross margin so important? how do they influence the profitability and value of the

  What was west divisions minimum required return in december

The West Division of Frede Corporation had average operating assets of $638,000. What was the West Division's minimum required return in December?

  Compute amount of overhead to be allocated to each product

Compute the amount of overhead to be allocated to each product under activity-based costing. (Do not round intermediate calculations.)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd