Underground Food Store has 4,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $4.50. The beef could be sold "as is" for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli. The cost of roasting the beef will be $2.80 per pound, and each pound could be sold for $6.50. What should be done with the beef, and why? If required, round final answers to two decimal places. The beef processed further since the sales price by $ per pound and the cost only by $ per pound.
Q: The Deer Valley Farm produces a natural organic fertil-izer, which it sells mostly to gardeners and…
A: Economic optimal production is the quantity model in which the manufacturer estimates the optimal…
Q: Beretti’s Food Mart has 6,000 pounds of raw pork nearing its expiration date. Each pound has a cost…
A: A business decision-making is a process applied to each decision carried out by the management. It…
Q: Farm Foods Company, produces two types of pork loins . Each type of loin consists of white meat and…
A: pork loins Problem: Selling Price of pork loins (per pound) pork loins 1 pork loins 2…
Q: Garcia Company has 10,000 units of its product that were produced last year at a total cost of…
A: Relevant and Sunk Costs: Relevant costs are those costs in any managerial decision-making process…
Q: A vegetable stand owner purchases onions at the rate of P350 per kg daily and sells it at the rate…
A: Profit or loss can be calculated as follows = Selling price - Cost of product If the above figure is…
Q: Dairyplus processes organic milk into plain yogurt. Dairyplus sells plain yogurt to hospitals,…
A: Sell the existing product or further processing is a managerial decision which is based on various…
Q: one-hour machine will be $150,000 per year. XYZ currently offers overnight film processing with…
A: Return on investment (ROI) is a statistic for determining how profitable an investment is.To measure…
Q: Dennis Corp produces a dog food product called Special Export. It currently has 10,000 bags of…
A: Sell or further process decision was the decision made by the company to produce the product or to…
Q: Custard's Bakery produces a pie that requires 2.6 pounds of fruit per pie. The allowance for waste…
A: Standard direct material is the raw material quantity that is required to produce the product. The…
Q: General Mills makes Nature Valley granola bars, Cheerios cereal, Yoplait yogurt, Haagen-Dazs ice…
A: Cost Volume profit analysis is used to determine how the profits of the company are affected if we…
Q: A company must decide between scrapping or reworking units that do not pass inspection. The company…
A: Step 1: Workings for the answer:
Q: The Hub Store at a university in eastern Canada is considering purchasing a self-serve checkout…
A: Saving on machine = $43,500 Cost of machine = $410,000 Time period = 10 years Operating cost per…
Q: Mc Donald’s sells 1500 burgers per year. The cost to place an order for raw materials is RO 40. The…
A: Economic order quantity is optimal level of ordering where the carrying cost is equal to the…
Q: Martin Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens…
A: a-1. Allocation of joint cost to the joint products: Results of formulas used in excel sheet is as…
Q: Kabundukan Dairy makes cheese, which it sells at local supermarkets. The fixed monthly cost of…
A: Given: Fixed Cost - 4000 Variable Cost - 0.21 per pound Selling price - 0.75 per pound Unit can be…
Q: A vegetable stand owner purchases onions at the rate of P350 per kg daily and sells it at the rate…
A: Lets understand the basics. For calculating onwers profit per kg of onion sold, we need to use below…
Q: Shilling Manufacturing produces and sells oil filters for $3.25 each. A retailer has offered to…
A: The question is based on the concept of Financial Management.
Q: The local fruit stand purchases 600 pounds of bananas at $1.49 per pound. They know from experience…
A: Markup is the difference between the cost price and selling price of a product. Markup is generally…
Q: Cluck Farms, Inc. produces a crop of chickens at a total cost of $66,000. The production generates…
A: Incremental analysis: It can be defined as a financial technique that is used by the business for…
Q: shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is…
A: The cross over point is the point where total costs of different alternative are equal.
Q: Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Berry Farm produces organic tomatoes and strawberries. In June 2021, it transported 115 boxes of…
A: As per IAS 115,Revenue Recognition, 5th condition for Revenue recognization is to recognize…
Q: Quality Clothing, Inc., produces skorts and jumper uniforms for school children. In the process of…
A:
Q: Zachary Fruit Drink Company planned to make 202,000 containers of apple juice. It expected to use…
A: The standard costs are the predetermined per-unit costs of the products. It forms the basis of…
Q: The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is…
A:
Q: The manager of a fast-food restaurant featuring hamburgers is adding salads to the menu. For each of…
A: Total cost =Fixed cost + (Variable cost per unit ×Volume)Total cost to make=$12000 + ($1.5 x…
Q: Underground Food Store has 6,000 pounds of raw beef nearing its expiration date. Each pound has a…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in…
A: Optimum quantity to be order a time and number of order in a year are used to minimized the ordering…
Q: Pirate Seafood Company purchases lobsters and processes them into tails and flakes. It sells the…
A: In process costing, costs are accumulated by department for a period of time. The production report…
Q: The Olde Town Microbrewery makes Townside beer,which it bottles and sells in its adjoining…
A: Step 1 Economic order quantity is the optimal order quantity where the ideal order quantity a…
Q: ABC Pharmaceutical Company is planning to produce exactly 40 kilograms of a mixture of new low-price…
A: In case where more than one variable is missing, it is required to identify if the objective is to…
Q: A Texas Steak House in Puebla consumes 5,500 pounds of sirloin steak each month. Ari Mendoza, the…
A: EOQ=2×Annual Demand×Setup costCarrying Cost
Q: The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is…
A: Contribution per unit=Sale-Cost of sweatshirt-Commission=$40-$20-$7=$13
Q: Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The…
A: The Breakeven point represents the situation where the company does not earn a profit nor it…
Q: A local pizza shop owner decides to hire an economic consultant to help him set his prices.…
A: A revenue is an income which is generated by business operation.Business operation refers to buying…
Q: Underground Food Store has 6,000 pounds of raw beef nearing its expiration date. Each pound has a…
A: Opportunity cost can be defined as potential benefits or costs that will be missed out while…
Q: The owners of the appliance store want to spend up to $250,000 on buying new stock. They need to buy…
A: 1) Each appliance should the store buy to maximize profit is as follows: Resultant table:
Q: Your bakery can produce 3,000 unit of bagel per week for 48 weeks of operation per year. You aim to…
A: Depreciation of Dough mixer machine = (C-S)/N = (5000-1000)/5 = 800
Q: Melo's Steak House released three new steak cuts which are t-bone, ribeye, striploin, and…
A: Cost for melo steak = 450 per 100g Sales price = 450 * (1+ 50%) = 675 per 100g Cost for james =…
Q: Underground Food Store has 3,000 pounds of raw beef nearing its expiration date. Each pound has a…
A: Solution: Increase in sales price if processed further = 6.50 - 3.00 = 3.50 Increase in costs = cost…
Q: Hildesheim Company has 2,000 obsolete light fixtures that are carried in inventory at a…
A: Introduction: Opportunity cost: In simple terms , Cost for opportunity lost called as opportunity…
Q: A heavy trucks company has two warehouses in Muscat and Sohar and dealerships in Salalah and…
A: Cost is the monetary value of expenditures for various products. It is recorded as expense in…
Q: Underground Food Store has 4,000 pounds of raw beef nearing its expiration date. Each pound has a…
A: Here we should use incremental analysis
Q: Publix has 2,700 pounds of bananas with a total cost of $864. Because the bananas have become too…
A: If converted into bread $2,565 and sold at the cost of $4,480. Therefore, oven rentage is $300.
Q: What level of unit sales and dollar sales is needed to attain a target profit of $9,000? 2. Assume…
A:
Q: Preston Petroleum has spent $200,000 to refine 60,000 gallons of petroleum distillate, which can be…
A: Soltuion 1: Joint Cost of Producing 60000 gallons of petroleum distillate 200000 Revenue from…
Q: A local electronic repair shop uses 15,000 units of mobile batteries each year. It costs RO 30 to…
A: Economic order Quantity =2×A×OC A = Annual cost O = Ordering cost C = Carrying cost
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Berettis Food Mart has 6,000 pounds of raw pork nearing its expiration date. Each pound has a cost of $5.50. The pork could be sold as is for $2.50 per pound to the dog food processing plant, or it could be made into custom Italian sausage and sold in the meat department. The cost of the sausage making is $3.00 per pound and each pound could be sold for $7.50. What should be done with the pork and why?Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in the prior year was: At the start of the current year, Cinnamon Depot received a special order for 18,000 rolls to be sold for $1.50 per roll. The company estimates it will incur an additional $1,000 in total fixed costs in order to lease a special machine that forms the rolls in the shape of a heart per the customers request. This order will not affect any of its other operations. Should the company accept the special order? (Show your work.)Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the production of the boxed lunches. The costs to make the cookies are: A potential supplier has offered to sell Country Diner the cookies for $0.85 each. If the cookies are purchased, 10% of the fixed overhead could be avoided. If Jason accepts the offer, what will the effect on profit be?
- Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves dont require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order?
- Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year was: At the start of the current year, Marcotti received a special order for 15,000 cupcakes to be sold for $1.10 per cupcake. To complete the order, the company must incur an additional $700 in total fixed costs to lease a special machine that will stamp the cupcakes with the customers logo. This order will not affect any of Marcottis other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? (Show your work.)Underground Food Store has 4,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $4.50. The beef could be sold “as is” for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli. The cost of roasting the beef will be $2.80 per pound, and each pound could be sold for $6.50. A) What is the gross profit/loss per pound if the raw beef is sold "as is" to the dog food processing plant? If it is negative, use a dash - not parentheses ( ). B) What is the gross profit/loss per pound if the raw beef is roasted and sold in the deli? If it is negative, use a dash - not parentheses ( ). C) Should the beef be sold "as is" or roasted and sold in the deli?Beretti’s Food Mart has 6,000 pounds of raw pork nearing its expiration date. Each pound has a cost of $5.50. The pork could be sold “as is” for $2.50 per pound to the dog food processing plant, or it could be made into custom Italian sausage and sold in the meat department. The cost of the sausage making is $3.00 per pound and each pound could be sold for $7.50. What should be done with the pork and why?
- Underground Food Store has 6,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $4.40. The beef could be sold "as is" for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli. The cost of roasting the beef will be $2.70 per pound, and each pound could be sold for $6.40. What should be done with the beef, and why? If required, round final answers to two decimal places. The beef should be processed further since the sales price will increase by $??? per pound and the cost only increase by $???? per pound.The Olde Town Microbrewery makes Townside beer,which it bottles and sells in its adjoining restaurant and bythe case. It costs $1700 to set up, brew, and bottle a batchof the beer. The annual cost to store the beer in inventory is$1.25 per bottle. The annual demand for the beer is 21,000bottles and the brewery has the capacity to produce 30,000bottles annually. a. Determine the optimal order quantity, total annual inven-tory cost, the number of production runs per year, and the maximum inventory level.b. If the microbrewery has only enough storage space tohold a maximum of 2500 bottles of beer in inventory,how will that affect total inventory costs?A Texas Steak House in Puebla consumes 5,500 pounds of sirloin steak each month. Ari Mendoza, the new restaurant manager, recently completed an engineering degree. He learned that the steak is replenished using an EOQ value of 3,500 pounds. The EOQ value was computed assuming an interest rate of 23 percent per year. Assume that the current cost of the sirloin steak to the steak house is $10 per pound. What is the setup cost used in determining the EOQ value? Mendoza received an offer from a meat wholesaler in which a discount of 20 percent would be given if the steak house purchased the steak in quantities of 6,000 pounds or more. Should Mr. Mendoza accept the offer from the wholesaler? If so, how much can be saved?