Answer:
(b) $ 43,750 increase
Explanation:
The computation of the effect on operating income is shown below:
= Contribution margin per unit × special order
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $7.50 - $5.75
= $1.75
And, the special order is of 25,000 pairs
Now put these values to the above formula
So, the value would equal to
= $1.75 × 25,000 pairs
= $43,750
The fixed cost would remain unchanged.
Answer:
C. Diversification
Explanation:
Diversification is the process of a business enlarging or varying its range of products or field of operation.
Answer:
Earnings per share (EPS) = (net income - preferred dividends) / average number of outstanding shares
EPS for all equity plan:
($80,000 x 60%) / 18,000 = $2.67 per share
EPS for Plan I:
[($80,000 - $5,000) x 60%] / 12,000 = $3.75 per share
EPS for Plan II:
[($80,000 - $7,750) x 60%] / 8,700 = $4.98 per share
Savings usually have positive impacts on economic growth of a nation. Firstly, increase in the amount of money saved increase the amount of money that are available in the banks which can be used for investment purposes that will benefit the economy. Secondly, high saving rate in an economy increases the ability of that economy to recover from inflation and recession. Personally and nationally, saving helps to cope better with economic and financial down turns.
Answer:
B) decreases GDP by $60,000.
Explanation:
The GDP includes the total production of final and legal goods and services. But in order for a service to be included in the GDP, they must be sold to someone else. The same restriction applies to a person that grows vegetables and fruits on his/her backyard for personal consumption.
If an exchange is not made, then it is not included in the GDP. The difference with manufactured products that once finished are included in inventories (increase investment) is that materials, labor and other inputs were used to produce them and someone got paid for them.
