Answer: Increase of $20,000
Explanation:
The cost of making a unit is:
= Direct material + Direct labor + Variable overhead + Fixed overhead
= 10 + 14 + 5 + 3
= $32
For 4,000 units that would be:
= 4,000 * 32
= $128,000
Cost of buying 4,000 units :
= Cost of buying + Fixed cost
= (4,000 * 30) + (3 / 2 * 4,000)
= $126,000
This cost is further reduced by the renting of the unused space:
= 126,000 - 18,000
= $108,000
Impact on profit:
= Cost of making - Cost of buying
= 128,000 - 108,000
= $20,000
Increase of $20,000
Answer and Explanation:
A bond premium which is payable on bond is amortized will be amortized with a charge to the premium and an a good representative for intrigue cost, lessening it. On the off chance that amortization isn't recorded, intrigue cost isn't appropriately decreased and is exaggerated. The exaggeration of intrigue cost will bring modest representation of the truth of net gain and a modest representation of the truth of value
Option d.$170,400 is the corect option.
Incremental Net income
Increamental Revenue $4,52,800
(28,300 X $ 16 Per unit)
Less: Variable Costs $3,11,300
(28,300 X $ 11 Per unit)
Less: Fixed Cost (Not taken because does not affect this due to accepting special orders) = $0
Total Net Revenue $170,400
Answer = d.$170,400
To determine the unit price of a product, you first need to calculate the total manufacturing cost of all items manufactured in a particular time period. Then divide the estimate by the number of items. The final number is the manufacturing cost of one unit.
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