Answer:
Effect on income= $0
Explanation:
<u>Because the company has excess capacity and it is a special offer that would not affect normal sales, we will not include the fixed costs.</u>
Effect on income= total sales revenue - total variable cost
Effect on income= 24*4,960 - (20 + 4)*4,960
Effect on income= $0
Answer:
Therefore I can borrow $19646.12 from E-Loan.
The interest I will pay for the loan is $1,857.88.
Explanation:
The formula of present value is
PMT = The monthly payment = $448
i= Rate of interest per period 
n = The number of month = 48 months
Therefore
≈$19646.12
Therefore I can borrow $19646.12 from E-Loan.
The interest = Paid amount - Loan amount
=$[(448×48)-19646.12]
=$1,857.88
The interest I will pay for the loan is $1,857.88.
Answer: Goal acceptance
Explanation:
Most times in organizations, it is the people in leadership positions who set and manage goals for the employees and it is rare for staff to be part of the goal setting process,
Such employees are sometimes not sure of what to do and how to achieve the goals. Such employees are not in charge of their own responsibilities. Employee goal acceptance is when employees are just part of the process when making decisions even though the goals are set by the management.
Answer:
a. a majority of both shareholders and directors must approve.
Explanation:
Whenever a corporation decides to dispose off all of it's assets or substantially all of it's assets to another corporation, following points are noteworthy
- The Board of directors first have to propose a resolution regarding disposition which has to be approved
- Secondly post approval of the said resolution, the act of "disposition" also requires approval by the corporation's shareholders.
- Such approval must be obtained by majority of the votes cast in it's favor.
In short, disposition of all or substantially all the assets requires an approval of a majority of both shareholders and directors.
Answer:
Operating profit using absorption costing will be higher by $3,600 than operating income if using variable costing.
Explanation:
<em>The difference between profit under variable costing and under absorption costing is simply the value of the change in inventory.
</em>
<em>Usually, a decrease in inventory would cause profit under absorption costing to be lower . This is so because cost of goods sold would become higher leading to a lower profit
. And vice versa</em>
<em>Difference in profit = POAR × change inventory
</em>
Predetermined Overhead absorption rate(POAR)
= Estimated overhead/ estimated production unit
= $24,000/2,000 units = $12 per unit
Change in inventory = 1500 - 1200= 300 units
Difference in profit = 300 × $12 per unit = $3,600
Operating profit using absorption costing will be higher by $3,600 than operating income if using variable costing.
