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chubhunter [2.5K]
3 years ago
13

It costs Waterway Industries $28 of variable costs and $14.40 of allocated fixed costs to produce an industrial trash can that s

ells for $72. A buyer in Mexico offers to purchase 3000 units at $39 each. Waterway Industries has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?
Business
1 answer:
Georgia [21]3 years ago
7 0

Answer:

Special request income 33,000

Explanation:

special request:

3000 units x $39 = 117,000

variable cost:

3000 units x $28 = 84,000

<u>Contribution margin 33,000</u>

special cost:              <em>none</em>

additional fixed cost:   <em>none</em>

Special request income 33,000

Notice:

Non additional shipping or setup cost is request for the order.

Non increase in fixed cost due to excess capacity.

If any of this concept do inccur in additional cost, it should be relevant as well in the calculations.

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Answer:

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8 0
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7 0
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40-55 years is the expected number of years that known natural gas reserves are expected to last given that the current rates of use and extraction<span> do not change. The world has 40-55 years left to find an alternative to oil before it runs out.</span> 

 

 

 

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Answer:

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