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Table D.2 Bahouth Enterprises Produces a Variety of Hookahs for Clients Around

question 25

Multiple Choice

Table D.2
Bahouth Enterprises produces a variety of hookahs for clients around the globe. Their small plant has a highly flexible workforce that can switch between products seamlessly. They forecast using a six-month planning period and have a demand forecast as shown in the table. The per-unit costs for each output option the sales and operations planner has at his disposal are indicated in the table. Regular output costs $40 per unit, overtime production is $60 per unit, and subcontracting is $70 per unit. Holding inventory from one month to the next costs $2 per unit per month and a backlog costs $5 per unit per month. Regular plant capacity is 300 units per month.

-Use the information in Table D.2. If the plant has no limits on the number of units produced by overtime or subcontractors, what is the lowest-cost chase plan that is possible for the six-month period?

Understand the general principles of accounting for accounts receivable under both IFRS and U.S. GAAP.

Calculate and analyze accounts receivable balances, including the allowance for uncollectible accounts.

Prepare and understand the significance of an amortization schedule for installment sales contracts.

Determine and account for the effective interest rate in troubled debt restructuring.

Definitions:

Team

A group of individuals working together towards a common goal, often characterized by collaboration, communication, and collective effort.

Exaggerated Hockey Stick

A term used to describe a revenue growth projection for a business that unrealistically shows a sharp increase in revenue after a certain point, resembling a hockey stick.

Slip-On Shoe

A type of shoe that does not require lacing or fastening, designed to be easily slipped on and off the foot.

Market

The arena in which commercial dealings are conducted, often referring to the supply and demand for goods and services.