Question 1 1 pts Stephen's Shoes makes laces for their shoes. The following are the...

70.2K

Verified Solution

Question

Accounting

image

Question 1 1 pts Stephen's Shoes makes laces for their shoes. The following are the costs: DM $.10, DL $.20, MOH $.30 for a total of $.60 per pair of laces. Gray Company has offered to sell Stephen laces for $.40 per pair. Stephen uses 10,000 pairs in a month. The fixed MOH is $2,400 at a level of production of 10,000 pairs, and it will not change. If Stephen buys the laces, how much better or worse off will they be? (use a - for negative numbers and just enter for positive) Question 2 1 pts Reggies sells office chairs to their regular customers for $200. The chairs cost is as follows: DM $50 per chair, DL $25 per chair, Var MOH $25 per chair, and Fix MOH $40 per chair. They normally sell 5,000 chairs in a month, and they have sufficient capacity to make and sell another 2,000. Gina, who is not a regular customer, talks to Reggie about buying 1,000 chairs but at a price of only $125 per chair. How much would operating income increase or decrease (-) if Reggie accepted the special order (assuming existing sales were unaffected)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students