Mel’s meals 2 go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. mel’s kitchen and adjoining meeting room operate at 70 percent of capacity. mel’s purchases the cookies for $0.60 each but is considering making them instead. mel’s can bake each cookie for $0.20 for materials, $0.15 for direct labor, and $0.45 for overhead without increasing its capacity. the $0.45 for overhead includes an allocation of $0.30 per cookie for fixed overhead. however, total fixed overhead for the company would not increase if mel’s makes the cookies. mel himself has come to you for advice. “it would cost me $0.80 to make the cookies, but only $0.60 to buy. should i continue buying them? ” materials and labor are variable costs, but variable overhead would be only $0.15 per cookie. two cookies are put into every lunch. how would you advise mel? prepare a schedule to show differential costs

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.

Royal motor corp. generates a major portion of its revenues by manufacturing luxury sports cars. however, the company also derives an insignificant percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. which of the following terms best describes royal motor corp.? a. aconglomerate b. a subsidiary c. adominant-businessfirm d. a single-business firm

"consists of larger societal forces that affect how a company engages and serves its customers."