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
dsp73
3 years ago
6

Elkhorn, Inc., which has excess capacity, received a special order for 4,000 units at a price of $15 per unit. Currently, produc

tion and sales are anticipated to be 10,000 units without considering the special order. Budget information for the current year follows.
Sales $ 190,000
Less: Cost of Goods Sold 145,000
Gross Margin $ 45,000
Cost of goods sold includes $30,000 of fixed manufacturing cost. If the special order is accepted, the company's income will:

increase by $2,000.

decrease by $14,000.

decrease by $2,000.

increase by $14,000.

None of the answers is correct.
Business
1 answer:
Kisachek [45]3 years ago
4 0

Answer:

The company's income will increase by $14,000.

Explanation:

Cost of goods sold per unit excludes fixed manufacturing cost:  

($145,000 - $30,000)/10,000 = $11.5

If the special order is accepted:

Sales revenue of the special order = 4,000 x $15 = $60,000

Cost of good sold of the special order = 4,000 x $11.5 = $46,000

Fixed manufacturing cost does not change after  the special order is accepted.

Income from the special order = $60,000 - $46,000 = $14,000

The company's income will increase by $14,000.

You might be interested in
As more and more firms around the world tighten their corporate governance mechanisms by setting up boards of directors made up
7nadin3 [17]

The most likely effect is that it will most likely deter unethical behavior among top-level managers.

<h3>What is Ethics?</h3>

This refers to the moral principles that guide an individual's behavior and conduct of activity.

Hence, we can see that based on the creation of a board of directions that tightens up corporate governance mechanisms, there would be stronger boundaries that will deter unethical behavior among top-level managers.

Read more about ethics here:

brainly.com/question/24606527

5 0
2 years ago
Newhard Company assigns overhead cost to Jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 includes
Ivahew [28]

Answer:

a. Total manufacturing cost $37,000

b. Unit product cost $37

Explanation:

Total Cost = Sum of all manufacturing costs

Total manufacturing cost -

direct materials                                  $10,000

direct labor                                         $12,000

overhead ($12,000×125%)                 $15,000

Total                                                    $37,000

Unit Product Cost = Total Cost / Number of Units

                             =  $37,000/ 1,000 units

                             = $37

8 0
3 years ago
Read 2 more answers
A new operating system for an existing machine is expected to cost $600,000 and have a useful life of six years. the system yiel
Slav-nsk [51]
For the first investment the solution as follows
Annual depreciation
600,000÷6 years=100,000

Net annual cash flows
100,000+155,000=255,000

Present value
255,000×4.11141+16,600×0.50663
=1,056,819.608

Net present value
1,056,819.608−600,000=456,819.608

For the second investment the solution as follows
Annual depreciation
390,000÷8 years=48,750

Net annual cash flows
48,750+60,000=108,750

Present value
108,750×4.96764+24,500×0.40388
=550,125.91

Net present value
550,125.91−390,000=160,125.91
4 0
3 years ago
The Odessa Supply Company is considering obtaining a loan from a sales finance company secured by inventories under a field ware
dimulka [17.4K]

Answer:

a) 15.33%

b) 16.4%

Explanation:

Data provided in the question:

Annual interest rate = 10 percent

Additional cost of maintaining a field warehouse = $16,000 per year.

Now,

Annual financing cost

= [ ( Interest cost + Additional cost ) ÷ Usable funds ] × 100%

For a) Amount borrowed = $300,000

Annual financing cost

= [ ( 10% of $300,000 + $16,000 ) ÷ $300,000 ] × 100%

= 15.33%

For b) Amount borrowed = $250,000

Annual financing cost

= [ ( 10% of $250,000 + $16,000 ) ÷ $250,000] × 100%

= 16.4%

4 0
4 years ago
Use the ethical tools from the readings to discuss the ramifications of electronic medical records. Suppose that there was a nat
ladessa [460]

Answer and Explanation:

1) EHR System which helps in capturing the functionalities and and check for required informations

2) Online Tool for notifying the doctor about the status pf the patient

3) Interactive health records

4) Computerized physician entry of orders (CPOE)

Benefits of centralized system are as follows:

1) IT gives a lower hardware expense

2) Improves the productivity of the IT Staff

3) Enhances the purchasing power

4) Meets the industry regulations

5) Information flow is properly maintained.

The cost of the system would be with respect to the tools to be used and the broadness of the network.

5 0
3 years ago
Other questions:
  • A researcher may be investigating credit card usage and may want to see if high-income earners differ from moderate-income earne
    5·1 answer
  • On October 31, 2021, Damon Company’s general ledger shows a checking account balance of $8,400. The company’s cash receipts for
    10·1 answer
  • Simplify:<br><br>a. (-18x2y)/(3x)<br><br>b. (x-4) (x-1) - 4(x-3) (x+2)​
    11·2 answers
  • Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several fina
    7·1 answer
  • The capital budgeting process is comprehensive and is based on certain assumptions, models, and benchmarks. This process often b
    7·1 answer
  • France gave Excelsior's Limited (a U.S. manufacturer of beauty products) permission to export its product to France as long as t
    5·1 answer
  • Is this picture showing pathos, ethos, or logos? explain why.
    8·2 answers
  • The job of increasing public awareness of a company's products, brands, or activities and by fostering desirable company images,
    15·1 answer
  • Game theory assumes that: Group of answer choices firms anticipate rival firms' decisions when they make their own decisions. fi
    14·1 answer
  • In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on the accounts is?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!