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
kkurt [141]
3 years ago
15

aria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is h

er forecasted income statement for April, when she expects to produce and sell 3,200 meals: Amount Per Unit Sales revenue $ 19,840 $ 6.20 Costs of meals produced 14,720 4.60 Gross profit $ 5,120 $ 1.60 Administrative costs 2,240 0.70 Operating profit $ 2,880 $ 0.90 Fixed costs included in this income statement are $4,864 for meal production and $640 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.60 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected. What impact would accepting this special order have on operating profit?
Business
1 answer:
zhannawk [14.2K]3 years ago
8 0

Answer:

Increase operational profit by $156

Explanation:

As for the provided information, we know that the there is an idle capacity lying, which can now be used, and since the capacity is idle, no extra fixed cost will be incurred.

The variable cost for each unit is as follows:

Cost of meal produced = $14,720 which includes fixed cost of $4,864, variable cost = $14,720 - $4,864 = $9,856

Cost per meal = $9,856/3,200 = $3.08

Administrative cost as provided will not be affected.

Thus, the total relevant cost per meal = $3.08

Cost of 300 meals = $3.08 \times 300 = $924

Since the organization will pay $3.60 per meal, there will be total revenue from such sales as follows:

$3.60 \times 300 = $1,080

Less: Total Cost = ($924)

Profit = $156

Therefore, this special order will increase the operating profit of Maria by $156.

You might be interested in
On January 10, 2017, a man in Lebanon, Virginia, frustrated with the DMV bureaucracy, paid his DMV bill with 300,000 pennies tha
Zepler [3.9K]

Answer:

a. The initial change in the money supply would be $0

b. The initial change in deposits would be $3,000.

c. Total reserves will also increase by $3,000.

d. The excess reserves is $2,820.

e. Cumulative change = $47,009

Explanation:

(a)  Currency in circulation and bank deposits are both parts of the money supply.

So, when a man paid DMV with 300,000 pennies or $3,000 which DMV deposited into its account then in that case currency in circulation decreased by $3,000 and bank deposits increase by $3,000.

Since one component of the money supply is increasing while other is decreasing and that also by the same amount there will be no change in the money supply.

So,  the initial change in the money supply would be $0

(b)  DMV has deposited $3,000 into its bank account.

So,

Deposits will increase by $3,000.

Thus,

The initial change in deposits would be $3,000.

(c) Total reserves increases in the equal amount of the increase in deposits.

Deposits have increased by $3,000.

So,

Total reserves will also increase by $3,000.

Thus,

The initial change in total reserves would be $3,000.

(d)  New deposit created = $3,000

Reserve requirement = 6 percent

Required reserves created = $3,000 * 0.06 = $180

Excess reserves = New deposit - Required reserves = $3,000 - $180 = $2,820

The excess reserves is $2,820.

(e)  Reserve requirement = 6% or 0.06

Money multiplier = 1/Reserve requirement = 1/0.06 = 16.67

Calculate the cumulative change in the banking system in lending capacity -

Cumulative change = Excess reserves * Money multiplier

Cumulative change = $2,820 * 16.67 = $47,009

The cumulative change in the banking system in lending capacity would be $47,009.

5 0
3 years ago
In a command economy, Individuals fellow thir self-interest without government intervention True or False İf false, correct the
Ostrovityanka [42]

Answer:

False

Explanation:

In a command or planned economy, the factors of production are owned and controlled by the government.  The government makes all the significant economic decisions such as production, distribution, and pricing.  

The government prepares a central plan for the entire economy. The plan determines the production level, the goods and services to be produced, and their prices.  The central government employs all workers. The private sector does not exist.

8 0
3 years ago
Jean says to Joan, "If you'll promise to feed my dog each day while I am out of town next week, I'll pay you $100." Joan replies
blsea [12.9K]

Answer:

When Joan said that she would feed Jean's dog

Explanation:

A verbal contract comes into existence when there is a proposal and the person who receives the offer accepts the conditions. When the offeror and the offeree comes into a verbal agreement (terms and conditions) the speaking acceptance becomes the contract into reality.

3 0
3 years ago
_____ are sources of assistance for helping an entrepreneur with starting, running, and staying in business. SCORE SBDC SCORES S
yawa3891 [41]

Answer:

i think its SAB but im not sure

Explanation:

6 0
3 years ago
Read 2 more answers
(a) how are bonds rated? (b) how are these rating helpful to the investors?​
Jet001 [13]

Answer:

a) Bond rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business.

b) Bond rating helps in analysing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments.

Explanation:

a) Bond-rating is the letter grading system that is used to indicate the quality of the credit-related to the bond of various organizations. Bond-rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business. Internal factors may include the financial strength of the organization. External factors may include various networks with interested investors and other government organizations and policies related to the same.

There are three important agencies that analyze the credit quality of a bond. These agencies are Standard & Poor's, Moody's, and Fitch rating Inc.

b) Bond-rating help in analyzing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments. It helps the investors to study the stability and quality of a bond. Hence, higher-rated bonds are considered to be more stable and appropriate for investment purposes.

7 0
3 years ago
Other questions:
  • If firms and households form their expectations about inflation by looking at past inflation, this form of expectations formatio
    8·1 answer
  • Veronica buys a laptop from a local salesperson, but it turns out to be defective. She tells her friends and relatives about the
    12·1 answer
  • (5). The variance of Stock A is .005, the variance of the market is .008 and the covariance between the two is .0026. What is th
    11·1 answer
  • Bonnie and james are retired. they wish to continue to invest in their portfolio and are seeking income instead of growth. which
    11·1 answer
  • Which term is used to describe software used by cybercriminals?
    11·1 answer
  • Differing ____ levels and _______ requirements affect the choice of market entry
    6·1 answer
  • Mike is arrested at a warehouse in North Industrial Park and is charged with the crime of theft. Mike will be prosecuted bya. th
    7·1 answer
  • Moore’s Inc. will be making lease payments of $3,895.50 for a 10-year period, starting at the end of this year. If the firm uses
    12·1 answer
  • All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Dep
    5·1 answer
  • __________ refers to phishing with a specific, high-value target in mind. for example, the attacker may target the president or
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!