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Arlecino [84]
3 years ago
14

It costs Sheffield Corp. $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A for

eign wholesaler offers to purchase 2000 scales at $15 each. Sheffield would incur special shipping costs of $1 per scale if the order were accepted. Sheffield has sufficient unused capacity to produce the 2000 scales. If the special order is accepted, what will be the effect on net income?
Business
1 answer:
Natasha2012 [34]3 years ago
4 0

Answer:

the effect on pre-tax net income will be an increase for 4,000.

Explanation:

This is a case for Relevant cost:

The company has sufficient capacity to produce this scales, without increasing the fixed cost.

we need to check if the offer covers the variable cost and the additional shipping cost.

15$ sales price - $12 variable cost - $1 shipping cost = $2 contribution margin

2000scales *2 CM = 4,000 effect on net income

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Orders for clothing from a particular manufacturer for this year's Christmas shopping season must be placed in February. The cos
antoniya [11.8K]

Based on the concept of expected value, the units that the company should order to meet February demand is <u>57 units.</u>

<h3>What is expected value?</h3>

In mathematics under the probability distribution theory, the expected value is the weighted average of possible values of some random variables.  The weights are based on the theoretical probabilities of the variables.

<h3>Data and Calculations:</h3>

Cost per unit = $20

Selling price per unit = $50

<h3>Projected Demand</h3>

  Demand Units    Probability      Expected Demand Units

1.    50 units             40%                 20 units (50 x 40%)

2.   60 units             50%                 30 units (60 x 50%)

3.   70 units              10%                    7 units (70 x 10%)

Total expected demand units =    57 units

Thus, the expected demand in February is <u>57 units</u>.

Learn more about calculating expected values at brainly.com/question/10675141

8 0
2 years ago
Opportunity recognition is the process of identifying, ________, and developing new venture opportunities.
brilliants [131]

Answer:

Selecting

Explanation:

The answer has been added into the question in this paragraph. It is in bold letters. Opportunity recognition is the process of identifying, <u>selecting</u>, and developing new venture opportunities.

when we talk about opportunity recognition we are talking about the ability to perceive new ideas, opportunities for a business or venture. as well as also being on the lookout for ways to improve. a person could just come up with new money making venture, or he could come up with ways to improve an existing venture.

3 0
3 years ago
The intent of corporate advertising is to make sure that all of a company's products are seen in a common, positive manner. True
evablogger [386]

Answer:

False since the intent of corporate advertising is usually done to ensure that the perception of the company's image is positive.

Explanation:

Corporate advertising is usually done to ensure that the perception of the company's image is positive. The products under the corporation is not a priority in this case, rather its is the company as a whole that needs to be viewed in good light.

This kind of advertising forms part of the public relations techniques used by the company or institution to improve its public image. There are so many companies with different brands under them that utilize this advertising technique to improve their standing in the public eye. It is a way of making the company itself to be a brand by advertising the company as a package.

These companies always want to prove that they care more about the public than they care for the products, in this way they create the perception that the company is primary and anything else is secondary.

Cooperate advertising is majorly used in companies whose business activities have a negative effect to the public. Cooperation that engage in mining activities or activities that affect the environment are likely to utilize this form of advertising.

6 0
3 years ago
Gillstrap Promotions has projected the following values for the next three months:
alex41 [277]

Answer:

1.9058n n=15x x=17g g=5L

Explanation:

4 0
2 years ago
How much does the sky weigh?
Alona [7]

Answer: 11 billion billion pounds

Explanation:

4 0
3 years ago
Read 2 more answers
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