Ask Question
BusinessBusiness
23 May, 07:34

Expected sales for next year for the Beresford Company is 150,000 units. Curt Planters, manager of the Beresford Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 150,000 units or 170,000 units. The Beresford Company will have higher net income if Curt Planters decides to produce

+5
Answers (1)
  1. 23 May, 10:52
    0
    The correct answer is A.

    Explanation:

    Giving the following information:

    The expected sales for next year for the Beresford Company is 150,000 units. Curt Planters, manager of the Beresford Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 150,000 units or 170,000 units.

    In order to improve its performance based on more production, the company must use an absorption cost method. Absorption cost includes the fixed manufacture cost in the unit product cost. Therefore, by producing more units, the fixed costs spread on more units, decreasing the cost of units sold and increasing gross profit. The fixed costs of the period remain on inventory.

    He should produce 180,000 units under absorption cost method.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Expected sales for next year for the Beresford Company is 150,000 units. Curt Planters, manager of the Beresford Division, is under ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Determine the weighted cost of capital for the Mills Company that will finance its optimal capital budget with $120 million of long-term debt (kd = 12.5%) and $180 million in retained earnings (ke = 16.0%).
Answers (1)
The prospects for success facing your startup are risky: there is a 0.5 probability that you lose $1 million, 0.2 probability that you break even, and 0.3 probability that you make $5 million. What is the expected return from the startup? A.
Answers (1)
In the current year, Azul Corporation, a calendar year C corporation, received a dividend of $30,000 from Naranja Corporation. Azul owns 25% of the Naranja Corporation stock.
Answers (1)
Frank is an investor with a long time horizon and high risk tolerance. Which type of mutual fund would be best for his portfolio?
Answers (1)
For those brave enough to act effectively now to stabilise and protect your business and maintain liquidity, opportunity will come.
Answers (1)
New Questions in Business
Zero Corp. suffered a loss having a material effect on its financial statements as a result of a customer's bankruptcy that rendered a trade receivable uncollectible.
Answers (2)
Upward communication among organizational members at the same level can facilitate task coordination, provide means of sharing information, provide formal channel of communication for problem solving, and facilitate mutual support for staff involved.
Answers (1)
Last year, a women's professional organization made two small-business loans totaling $23,000 to young women beginning their own businesses. The money was lent at 9% and 11% simple interest rates.
Answers (1)
When Crossett Corporation was organized in January 2018, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative preferred stock and 50,000 shares of $20 par common stock.
Answers (1)
If the market is in equilibrium, then an option must sell at a price that is exactly equal to the difference between the stock's current price and the option's strike price. a. True b. False
Answers (1)
Home » Business » Expected sales for next year for the Beresford Company is 150,000 units. Curt Planters, manager of the Beresford Division, is under pressure to improve the performance of the Division.
Sign Up Forgot Password?