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borishaifa [10]
3 years ago
9

Wade Company is operating at 75% of its manufacturing capacity of 140,000 product units per year. A customer has offered to buy

an additional 20,000 units at $32 each and sell them outside the country so as not to compete with Wade. The following data are available: Costs at 750% capacity: Per Unit $12.00 $1.260,000 Total Direct materials Direct labor 945.000 9.00 1.575,000 $36,00 $3.780,000 Overhead (fixed and variable) Totals 15.00 In producing 20,000 additional units, fixed overhead costs would remain at their current level but incremental variable overhead costs of $6 per unit would be incurred. What is the effect on income if Wade accepts this order? Income will decrease by $4 per unit. Income will increase by $4 per unit. Income will increase by $5 per unit. Income will decrease by $5 per unit. Income will increase by $11 per unit.
Business
1 answer:
DanielleElmas [232]3 years ago
5 0

Answer:

Income will increase by $5 per unit

Explanation:

The income effect in case of the order accepted is presented below:

As we know that

Additional sales per unit $32

Direct material per unit $12

Direct labor per unit $9

And, the incremental variable overhead cost is $6 per unit

Since the fixed cost is the same so it does not affect the effect on income

So, the income effect would be

= $32 - $12 - $9 - $6

= $5 per unit

Since the answer comes in positive which means there is an increase in income

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The way a bank determines the balance on which you calculate your interest is known as an annual percentage rate. In reality, the banks take the annual percentage rate and charge a person on their daily interest rate. You can find out the daily rate by taking the APR, annual percentage rate, and divide it by the number of days in a year. The correct answer is D. 
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Diana's editorial business was not growing and she sought ways to expand her client list. She recognized that technology provide
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Answer:

C) knowledge

Explanation:

According to my research on different production factors, I can say that based on the information provided within the question Diana's is using the factor of production known as Knowledge. This can be said because she is learning new ways of growing her business by learning about different territories (technology) in which to expand her business.

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5 0
3 years ago
Find the EAR in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded
inna [77]

EAR = (1 + periodic interest rate)^N - 1

<u>9.25 % Quarterly %</u>

EAR = (1+\frac{0.0925}{4})^{4}  - 1 = 0.09575 or 9.58%

<u>16.75 Monthly % </u>

EAR = (1+\frac{0.1675}{12})^{12}  - 1  = 0.1809766 or 18.10%

<u>15.25 Daily % </u>

EAR = (1+\frac{0.1525}{365})^{365}  - 1  = 0.1647053 or 16.47%

<u>11.25 Semiannually %</u>

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4 0
3 years ago
ice Manager uses a Periodic Review Inventory System: they check the inventory in the Office Supply Closet once every 10 days, pl
gladu [14]

Answer:

910 days

Explanation:

Calculation to determine the Minimum Restocking Level needed to cover expected demand over time without stocking out

Using this formula

Minimum Restocking Level= (Average daily demand × Reorder period)+ (Average daily demand × Lead time)

Let plug in the formula

Minimum Restocking Level= (70 days × 10 days) + (70 days × 3 days)

Minimum Restocking Level=700 days + 210 days

Minimum Restocking Level= 910 days

Therefore the Minimum Restocking Level needed to cover expected demand over time without stocking out is 910 days

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When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign proj
7nadin3 [17]

Answer:

b. should be; should definitely not be

Explanation:

When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign project, inflation <u>should be </u>included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>should definitely not be</u> included explicitly in the cash flow analysis.

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Debt payments are NOT a requirement in investment analysis because the interest rate of the loans have been factored into the cost of capital with which the cashflows have been discounted

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