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
timurjin [86]
3 years ago
10

It costs Marigold Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit

. A foreign wholesaler offers to purchase 6200 units at $21 each. Marigold would incur special shipping costs of $2 per unit if the order were accepted. Marigold has sufficient unused capacity to produce the 6200 units. If the special order is accepted, what will be the effect on net income? $18600 increase
Business
1 answer:
olasank [31]3 years ago
7 0

Answer:

$6,200 Increase

Explanation:

Given that,

Costs Marigold Company = $26 per unit

Fixed cost = $8

Variable cost = $18

Selling price = $38 per unit

Foreign wholesaler offers to purchase 6200 units at $21 each.

Shipping costs = $2 per unit

Effect on net income:

= Sales - Variable cost - special shipping cost

= (6,200 × $21) - (6,200 × $18) - (6,200 × $2)

= $130,200 - $111,600 - $12,400

= $6,200 Increase

You might be interested in
Blossom Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the di
Shkiper50 [21]

Answer:

Present value = $35.00326585 rounded off to $35.00

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,

Present value = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +

[(Dn * (1+g)  /  (r - g))  /  (1+r)^n]

Where,

  • r is the required rate of return
  • g is the constant growth rate in dividends
  • n is the number of years

Present value = 5 / (1+0.155)  +  6.25 / (1+0.155)^2  + 4.75 / (1+0.155)^3  +  

3 / (1+0.155)^4  +  [(3 * (1+0.07)  /  (0.155 - 0.07))  /   (1+0.155)^4]

Present value = $35.00326585 rounded off to $35.00

3 0
3 years ago
Santora Company manufactures two productslong dash—toaster ovens and bread machines. The following data are​ available:
denpristay [2]

Answer:

Thus to maximize profit, Santora Company should manufacture Bread machine only.

The unit of Bread machine can be produced in 2,000 machine hours is 8,000 units

Explanation:

The profit for Toaster Ovens and Bread Machines is $10 and $90 respectively; thus  

six toaster ovens per machine hour will generate profit of $60 = ($10 *6)

four bread machines per machine hour  will generate profit of $360 = ($90 *4)

In the same machine hour the profit from Bread machines are significantly higher then Toaster over. Thus to maximize profit, Santora Company should manufacture Bread machine only.

The unit of Bread machine can be produced in 2,000 machine hours is 8,000 units (= 2,000 * 4)

The profit for 8,000 units of Bread machine is $720,000 = (8,000 * $90)

3 0
3 years ago
. If shareholders are granted a preemptive right they will: Select one: a. be able to choose the timing and amount of any future
PtichkaEL [24]

Answer:

Have priority in the purchase of any newly issued shares

Explanation:

Preemptive right is the right given to existing shareholders to maintain the proportion of their investment by buying a proportionate number of shares in any future sales of share.

The main essence of this is to ensure that their ownership interest is not diluted as more shares are issued and new investors come in.

In a preemptive share arrangement , consideration is given to existing shareholders ahead of any other person or entity .

5 0
3 years ago
Find the amount of money in a savings account after 5 years if you deposit $400 at 1.5% interest compounded
zimovet [89]

Answer:

3.5%

Explanation:

it maks sence, duh.

7 0
2 years ago
The business earns $700 of consulting revenue. How would these earnings affect the total equity of a business?a. Liabilities are
Sliva [168]

Answer:

d. Revenues increase, so total equity is increased.

Explanation:

Consulting Revenue of $700 will increase the total revenue of the business and total equity of the business as the revenue will increase the net profit which will ultimately be added to the equity balance. Increase in revenue will result in increase in equity and Increase in expenses will decrease the equity.

3 0
3 years ago
Read 2 more answers
Other questions:
  • Lightning Electronics is a midsize manufacturer of lithium batteries. The company’s payroll records for the November 1–14 pay pe
    9·1 answer
  • Need answer like, fast.
    13·1 answer
  • What are the most important elements of Toyota's organizational structure
    12·2 answers
  • Suppose that jack, sophia, and hal enter into a contract to close on the business without the non-competition agreement. jack st
    5·1 answer
  • Audrey works in the accounting department of Colorado Manufacturing. Today she will use the firm's ledger to summarize informati
    15·1 answer
  • Companies HD and LD are both profitable, and they have the same total assets (TA), Sales (S), return on assets (ROA), and profit
    13·2 answers
  • The following data pertain to the Oneida Restaurant Supply Company for the year just ended.
    10·1 answer
  • 1. After multiple rounds of layoffs, a plastics processing plant goes into bankruptcy because it has failed to keep up with tech
    8·1 answer
  • Connie is analyzing the financial statements of MegaMart and Bullseye Company. She wants to invest in one of the companies and i
    7·1 answer
  • The quantity of money demanded rises (that is, there is a movement along the money demand curve) when:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!