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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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The price of notebooks is $5, and at that price consumers demand 12 notebooks. If the price rises to $7, consumers will decrease
Vitek1552 [10]

Answer:

3

Explanation:

We are asked to use the midpoint formula.

Here, instead of dividing the change in values by the old value as in the normal elasticity calculation, we use the average of the two.

Mathematically:

Price elasticity of demand according to midpoint formula is :

{Q2 - Q1 / (Q2 + Q1) ÷ 2] × 100%} ÷ {[P2 - P1/ (P2 + P1) ÷ 2] × 100}

Price changed from 5 to 7. The midpoint of 5 and 7 is the average = (5+7)/2 = 6

% change in price in this case is (7-5)/6 * 100 = 100/3 = 33.33%

% change in quantity:

We first find the average = (12+4)/2 = 16/2 = 8

% change = (4-12)/8 * 100 = -100%

The elasticity of demand is thus -100/33.33 = 3

7 0
3 years ago
The following data (in millions) are taken from the financial statements of Target Corporation: Recent Year Prior Year Revenue $
amm1812

Answer:

Amount of change in millions (Revenue) = $1,339 (Increase)

Percent of change = 0.08178 = 1.88 % (Approx)

Explanation:

Given:

                       Current   Previous  

Revenue  $72,618  $71,279

Find:

Amount of change in millions = ?

Percent of change = ?

Computation:

⇒ Amount of change in millions (Revenue) = Current year revenue - Previous year revenue

⇒ Amount of change in millions (Revenue) = $72,618 - $71,279

⇒ Amount of change in millions (Revenue) = $1,339 (Increase)

⇒ Percent of change = Amount of change in millions (Revenue) / Previous year revenue

⇒ Percent of change = $1,339 / $71,279

⇒ Percent of change = 0.08178 = 1.88 % (Approx)

3 0
3 years ago
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Based on the given scenario above about how Jim acquired knowledge and information about careers, this kind of source can be classified as an EXTERNAL source. This is classified as an external source knowing that the source of information is his mom. Hope this helps.
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The publishing conglomerate Conde Nast is able to purchase mailing lists of people who have bridal interests, knowing that its M
katovenus [111]

Answer:

e. identifiable

Explanation:

Something is identifiable when is easy to recognize, in the excercise given the publishing conglomerate Conde Nast aims to this identifiable segments in order to reach certain customers.

I hope you find this information useful and interesting! Good luck!

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Management is a separate and different disciple than leadership.
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Answer:

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Explanation:

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8 0
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