Log in
HomeClass Notes1,200,000IN8,000

MA9902C00 Lecture Notes - Fundamental Interaction, Distribution Center

8 views10 pages
mahimaajith0204
23 Feb 2023
School
Mahatma Gandhi University
Department
Accounting
Course
MA9902C00
Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Stock administration alludes to methodologies, procedures, devices, and innovations utilized by organizations to deal with the most common way of requesting, putting away, utilizing, transportation, and selling an organization"s stock. Stock administration is a fundamental practice for each organization that handles any kind of stock, particularly for those that are stock based organizations as stock is quite possibly of the most important resource. Notwithstanding, stock can likewise be a responsibility as an enormous stock conveys the gamble of deterioration, burglary, harm, or becoming old. Hence, stock should be offered so as to limit misfortune and expenses related with it. That is the reason having the perfect proportion of stock is so fundamental. With that, normally, there are a wide range of sorts of stock and for every business, a stock can mean something different in view of the items or administrations they sell and the channels you sell them through.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

MA9902C00 Lecture Notes - Wipro, Robert Pollard, Securities And Exchange Board Of India
mahimaajith0204
MA9902C00 Lecture Notes - Corporate Finance, Working Capital, Current Liability
mahimaajith0204
MA9902C00 Lecture Notes - Freemium, Hypermedia, Ebay
mahimaajith0204

Related Questions

Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April, when she expects to produce and sell 3,900 meals:

Amount Per Unit

Sales revenue $ 26,910 $ 6.90

Costs of meals produced 19,305 4.95

Gross profit $ 7,605 $ 1.95

Administrative costs 3,120 0.80

Operating profit $ 4,485 $ 1.15

Fixed costs included in this income statement are $7,605 for meal production and $780 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.95 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected.

Required: a. What impact would accepting this special order have on operating profit?

Status Quo 3,900 Units Alternative 4,200 Units Difference
Sales revenue $26,910
Variable costs:
Meals
Administrative
Contribution margin
Fixed costs
Operating profit

Maria's Food Service provides meals that nonprofit organizationsdistribute to handicapped and elderly people. Here is herforecasted income statement for April, when she expects to produceand sell 3,200 meals: Amount Per Unit Sales revenue $ 19,840 $ 6.20Costs of meals produced 14,720 4.60 Gross profit $ 5,120 $ 1.60Administrative costs 2,240 .70 Operating profit $ 2,880 $ .90 Fixedcosts included in this income statement are $4,864 for mealproduction and $640 for administrative costs. Maria has received aspecial request from an organization sponsoring a picnic to raisefunds for the Special Olympics. This organization is willing to pay$3.60 per meal for 300 meals on April 10. Maria has sufficient idlecapacity to fill this special order. These meals will incur all ofthe variable costs of meals produced, but variable administrativecosts and total fixed costs will not be affected. Required: a. Whatimpact would accepting this special order have on operating profit?b. From an operating profit perspective for April, should Mariaaccept the order? Yes No Could you list steps as well so I canunderstand every number

Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April, when she expects to produce and sell 2,600 meals:

Amount Per Unit
Sales revenue $ 14,560 $ 5.60
Costs of meals produced 11,180 4.30
Gross profit $ 3,380 $ 1.30
Administrative costs 1,300 0.50
Operating profit $ 2,080 $ 0.80


Fixed costs included in this income statement are $3,380 for meal production and $520 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.30 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected.

Required:

a. What impact would accepting this special order have on operating profit? (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)

Status Quo

2,600 units

Alternative

2,900 units

 Difference
Sales Revenue ? ? ? ?
Variable Cost:
Meal ? ? ? ?
Administrative ? ? ? ?
Contribution margin ? ? ? ?
Fixed cost ? ? ? ?
Operating cost ? ? ? ?

b. From an operating profit perspective for April, should Maria accept the order?

*Yes
*No