1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jenyasd209 [6]
3 years ago
9

Cold company makes large containers of ice cream at a variable cost of $10 per container. it usually sells the container for $15

. cold company is operating at less than full capacity. a potential new customer is requesting containers of ice cream at a selling price of $12. should cold company accept the special order? select the best answer to the question. yes, there will be a $12 increase in net income for every new container sold. no, there will be a $3 decrease in net income for every new container sold. no, there will be a $5 decrease in net income for every new container sold. yes, there will be a $2 increase in net income for every new container sold.
Business
1 answer:
AlekseyPX3 years ago
8 0

Answer:

yes, there will be a $2 increase in net income for every new container sold.

Explanation:

Since the cold company has a variable cost of $10, so at this price the company is covering it's variable costs. Any amount over and above this price charged would be surplus and profit for the company. If the company accepts the special order it would make a profit of $2 for every new container sold.  The company was previously selling the container for $15 but they were selling limited number of containers. Therefore by accepting this special order they would probably generate more net income with a $2 profit (many containers) than with a $5 profit (limited containers).

You might be interested in
Chuck offers $240,000 for a house. The seller turns down the offer but says she will sell the house for $260,000. However, Chuck
qaws [65]

Answer:

Chuck must be less than $260,000

Explanation:

The economic decision rule is: Do it if that marginal benefit exceeds the marginal cost and Since Chuck was unwilling to purchase the house at $260,000, we can deduce that the marginal benefit of purchasing the house must be less than $260,000 due to the fact that the seller turns down the offer but says she will sell the house for $260,000.

6 0
3 years ago
I am planning to reduce the duration of lunch break by 10 minutes. Does anyone have any objection to this policy? In the context
NikAS [45]

Answer:

a) the leader presents ideas and invites questions.

Explanation:

Leadership continuum is a leadership style which describes the relationship with respect to the autonomy that a manager gives to his subordinates, and the level of authority used by him/ her. This is a inverse proportional relation which reduces the authority of the manager when team's freedom increases. It debases an autocratic rule by a manager, especially in taking decisions.

The example cited in the question is a way of taking decision by suggestions by expecting questions from his team.

5 0
3 years ago
Russell Co. reports sales revenue of $30,600 and interest revenue of $5,600. Its comparative balance sheet shows that accounts r
Goryan [66]

Answer:

Cash provided by operating activities $39,650

Explanation:

The computation of the cash provided by operating activities under the direct method is as follows:

Sales Revenue     $30,600

Decrease in Account Receivable $4,600

Interest Revenue $5,600

Increase in Interest Receivable - $1,150

Cash provided by operating activities $39,650

We simply applied the above sequence so that the correct value could come

And, the same is to be considered

6 0
2 years ago
Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $ 5,870,000
Elenna [48]

Answer:

$2.80 per chair

$2.25 per table

Explanation:

If cost is assigned at a rate based on direct labor hours, the total disposal cost for chairs and tables is, respectively:

D_c=\frac{254,000}{16,400+254,000}*\$630,000=\$591,789.94\\D_t=\frac{16,400}{16,400+254,000}*\$630,000=\$38,210.06\\

The respective disposal cost per unit is:

C = \frac{\$591,789.94}{211,000}=\$2.80/chair\\ T=\frac{\$38,210.06}{17,000}=\$2.25/ table

5 0
3 years ago
Read 2 more answers
Darwin Inc. sells a particular textbook for $20. Variable expenses are $14 per book. At the current volume of 50,000 books sold
Ksenya-84 [330]

Answer:

Fixed costs= $300,000

Explanation:

Giving the following information:

Selling price per unit= $20

Variable expenses= $14

Break-even point in units= 50,000

<u>To calculate the fixed costs, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

50,000= fixed costs / (20 - 14)

50,000*6= fixed costs

Fixed costs= $300,000

7 0
3 years ago
Other questions:
  • Matthew Liotine‘s Dream Store sells beds and assorted supplies. His best-selling bed has an annual demand of 400 units.Ordering
    7·1 answer
  • A company had beginning inventory of 11 units at a cost of $17 each on March 1. On March 2, it purchased 11 units at $28 each. O
    10·1 answer
  • What is the best way to finance your own business?
    7·1 answer
  • RF Company had January 1 inventory of $150,000 when it adopted dollar-value LIFO. During the year, purchases were $900,000 and s
    15·1 answer
  • What is the relationship between average total cost (ATC) and marginal cost (MC)? A. It is exactly the same as the relationship
    6·1 answer
  • Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 343,000 –$ 50,000 1 52,000 24,700
    8·1 answer
  • Manufacturing overhead for the month was underapplied by $6,000. The company allocates any underapplied or overapplied manufactu
    12·1 answer
  • Famous Foods is a fast-food chain restaurant famous for its hot coffee (its coffee temperature is a bit higher than that of the
    14·1 answer
  • Question 1 / 10
    9·1 answer
  • Durable goods $3,000
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!