Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives reveneues with a present value of $1,260 and incurs costs with a present value of $1,000. Cast Iron's costs have increased from $1,000 to $1,110. Assuming there's no probabililty of repeat ordes and that the probability of successful collection from the customer is p=0.95, A) What is the expected profit of granting credit? (don't round intermediate calculations. Round answer to 2 decimals) B) What is the break-even probability of collection?
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Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives reveneues with a present value of $1,260 and incurs costs with a present value of $1,000. Cast Iron's costs have increased from $1,000 to $1,110. Assuming there's no probabililty of repeat ordes and that the probability of successful collection from the customer is p=0.95,
A) What is the expected profit of granting credit? (don't round intermediate calculations. Round answer to 2 decimals)
B) What is the break-even probability of collection?
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- Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,230 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,080. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.95, answer the following. a-1. What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Expected profit (loss) ___________ per sale a-2. Should Cast Iron grant or refuse credit? Grant Refuse b. What is the break-even probability of collection? (Enter your answer as a percent rounded to 1 decimal place.)Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,230 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,080. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.95, answer the following. a-1. What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Should Cast Iron grant or refuse credit? Grant Refuse b. What is the break-even probability of collection? (Enter your answer as a percent rounded to 1 decimal place.)Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,220 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,070. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.97, answer the following. a-1. What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Should Cast Iron grant or refuse credit? b. What is the break-even probability of collection? (Enter your answer as a percent rounded to 1 decimal place.)
- Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,220 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,070. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.97, answer the following. a-1. What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) What is the break-even probability of collection? (Enter your answer as a percent rounded to 1 decimal place.)Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,390 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,240. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.95, answer the following. a-1. What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Should Cast Iron grant or refuse credit? multiple choice Grant Refuse b. What is the break-even probability of collection? (Enter your answer as a percent rounded to 1 decimal place.)Please help I only need the answer to question C, it is greatly appreciated and I will kindly upvote! Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,380 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,230. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.85, answer the following. a. What is the expected profit of granting credit? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 1 decimal place. b. Should Cast Iron grant or refuse credit? c. What is the break-even probability of collection? Note: Enter your answer as a percent rounded to 1 decimal place.
- On March 10, 20X1, Indigo Company sold to Barr Hardware 230 tool sets at a price of $54 each (cost $28 per set) with terms of n/60, f.o.b. shipping point. Indigo allows Barr to return any unused tool sets within 60 days of purchase. Indigo estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 20X1, Barr returned 6 tool sets and received a credit to its account. Prepare journal entries for Indigo to record (1) the sale on March 10, 20X1, (2) the return on March 25, 20X1, and (3) any adjusting entries required on March 31, 20X1 (when Indigo prepares financial statements). Indigo believes the original estimate of returns is correct. Two journal entries are needed for each part, thus six total journal entries.The sales manager of Lugi Company is at a loss on what to do with 10,000 units of defective parts on stock with a cost of P 25,000. Two proposals submitted for his consideration are as follows: a) sell the parts as scrap for P 1.75 per unit. b) Re-work the parts at a cost of P 12,500 and sell them for P 5 per unit. What is the net advantage or disadvantage of the proposal to re-work? P 20,000 advantage P 37,500 advantage P 7,500 disadvantage P 12,500 advantageOn March 10, 2020, Wildhorse Company sold to Barr Hardware 230 tool sets at a price of $53 each (cost $28 per set) with terms of n/60, f.o.b. shipping point. Wildhorse allows Barr to return any unused tool sets within 60 days of purchase. Wildhorse estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2020, Barr returned 6 tool sets and received a credit to its account. (a) Prepare journal entries for Wildhorse to record (1) the sale on March 10, 2020, (2) the return on March 25, 2020, and (3) any adjusting entries required on March 31, 2020 (when Wildhorse prepares financial statements). Wildhorse believes the original estimate of returns is correct. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)…
- Dhofar Company has the following information: Total Fixed cost OMR 8000 Selling price per unit OMR 20 Variable cost per unit OMR 12, What will be the correct amount of Profit when 2500 Units have been sold? Select one: a. OMR 12000 b. None of the options c. OMR 10000 d. OMR 20000 2) Power Company's income statement for 2021 is given below. If inventory balances are 5000 in 2021 and 9000 in 2020, and if accounts payables balances are 7000 in 2021 and 12000 in 2020. Which of the following is cash payments for COGS (cash inputs)? Sales 75,000 -COGS 55,000 Gross Profit 20,000 -Operating Expenses 8,000 Operating Profit 12,000 -Interest Expense 2,000 Profit before Tax 10,000 -Tax 3,000 Net Profit 7,000 Select one: a. 54000 b. 56000 c. 59000 d. 63000Diskmar has received a special order for 2,000 units of its product at a special price of $75. The product normally sells for $100 and has the following manufacturing costs:Direct material costs are $30; Direct labor costs are $20; and Variable Overhead costs are $15. Assume that Diskmar has sufficient capacity to fill the order without harming normal production and sales. a. If Diskmar accepts the order, what effect will the order have on the company's short-term profit? b. What minimum price should Diskmar charge to achieve a $25,000 incremental profit? c. Now assume Diskmar is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Diskmar accepts the order, what effect will the order have on the company's short-term profit?Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 22,000 units of product at $17 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $25 Unit manufacturing costs: Variable 11 Fixed 6 What is the amount of income or loss from the acceptance of the offer? a. $374,000 income b. $550,000 loss c. $242,000 loss d. $132,000 income