The following control procedures are used at Torres Company for over-the-counter cash receipts. Fareach procedure ecpera (a) (b) For each procedure, explain the weakness in internal control, and identify the control principle that is violated. For each weakness, suggest a change in procedure that will result in good internal control. 1. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stockroom until it is deposited in the bank.
(a) Weakness: Principle:
(b) Recommended Change:
2. All over-the-counter receipts are registered by three clerks who use a cash register with a single cash drawer. (a) Weakness: Principle: (b) Recommended Change:
3. The company accountant makes the bank deposit and then records the day's receipts. (a) Weakness:

Special order carson manufacturing, inc., sells a single product for $36 per unit. at an operating level of 8,000 units, variable costs are $18 per unit and fixed costs $10 per unit. carson has been offered a price of $20 per unit on a special order of 2,000 units by big mart discount stores, which would use its own brand name on the item. if carson accepts the order, material cost will be $3 less per unit than for regular production. however, special stamping equipment costing $4,000 would be needed to process the order; the equipment would then be discarded. assuming that volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether carson should accept the special order. use a negative sign with answer to only indicate an income loss from special order; otherwise do not use negative signs with your answers.