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
zalisa [80]
3 years ago
8

The company has an opportunity to sell 20,000 additional units at $13 per unit. The additional sales would not affect its curren

t expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 15% and (2) administrative expenses would increase by $86,000.
Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit.

Business
1 answer:
fiasKO [112]3 years ago
3 0

Answer:

$810,000

Explanation:

incremental revenues = 20,000 x $13 = $260,000

incremental direct materials costs = 20,000 x $2 = ($40,000)

incremental direct labor costs = 20,000 x $4 = ($80,000)

additional overhead costs = $200,000 x 15% = ($30,000)

additional administrative expenses = ($86,000)

incremental net income = $24,000

combined net income = incremental net income + regular net income = $24,000 + $786,000 = $810,000

You might be interested in
Suppose you reside in the Caribbean and purchase exclusive territory rights for a McDonald's franchise. You can construct as man
konstantin123 [22]

Answer:

This is a form of artificial monopoly.

Explanation:

In artificial monopoly a large firm exists with smaller firms in the same market. The large firm does not have a comparative advantage in production efficiency bit still drives the competition out of business.

Large firms use restrictive measures that prevents new form from entering the market. The other type of monopoly is the natural monopoly.

Having exclusive rights to open a MacDonald's in the Carribean where you can construct as many locations as you want is called artificial monopoly. The firm has successfully barred other firms from opening a MacDonald's in the Carribean.

5 0
2 years ago
Which of the following is not a goal of federal economic policy? full employment growth a high savings rate Keynesian economics
Ivan

Answer:

high savings rate

Explanation:

High savings rate is not a goal of federal economic policy. The goal of federal economic policy is to achieve full employment, economic growth and stable prices.

However 'high savings rate' is achieved when interest rates are increased in order to fight inflation and achieve 'stable prices' because people keep their money in the banks to take advantage of the benefit of earning interest BUT this is not always the case because 'higher interest rates' works against full employment by making it too costly for firms to borrow for investments which will definitely create jobs.

5 0
3 years ago
As recently as 20 years ago, circuses came to town with tents, animals, clowns, and other performers. An advance man arrived abo
Yanka [14]

Answer:

Market

Explanation:

7 0
2 years ago
Read 2 more answers
Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. Thi
iogann1982 [59]

Answer:

A) high magnitude of consequences.

Explanation:

Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. This is because delivering a faulty product has a high magnitude of consequences.

The customer is the king in the market, the company can not afford to lose reputation by a delivery faulty product. Especially in the era of social media, these mistakes can cause loss of market share and can potentially damage the credibility of the company´s product, which could take lot of time to rebuild. It may also affect other product of the company to lose reputation.

3 0
2 years ago
Rajesh Indian Market (RIM) is open 12 months out of the year. At RIM, the demand for rice is very consistent 200 pounds per mont
Paladinen [302]

Answer:

A. 566 pounds

Explanation:

Given: Demand for rice is very consistent= 200 pounds per month.

           Cost of rice per order= $50 per order.

           Rice cost= $5 per pound.

           Carrying charge= 15%

EOQ: Economic order quantity (EOQ) is the number of units that company should include in their inventory with each order to reduce cost of inventory.

Now, calculating EOQ.

Formula; EOQ= \sqrt{\frac{2DP}{C} }

D= Demand in units for specified period.

P= relevant ordering costs per order.

C= Relevant carrying cost of one unit in stock for the time period used for D.

EOQ= \sqrt{\frac{2\times (50)(200\times 12)}{5\times 15\%} }

⇒ EOQ= \sqrt{\frac{2(50)(2400)}{5\times (0.15)} }

Opening parenthesis

⇒ EOQ=  \sqrt{\frac{240000}{0.75} }

⇒ EOQ= \sqrt{320000}

∴ EOQ= 565.68\ pound \approx 566\ pounds

Hence, Economic order quantity is 566 pounds.

           

5 0
2 years ago
Other questions:
  • Experts believe the three greatest cybersecurity dangers over the next few years will involve all of thefollowing except _______
    12·1 answer
  • The stock of Canadian Ski Wear is currently trading at $45 a share and the company is expected to pay a dividend of $1.50 a shar
    7·1 answer
  • Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, suc
    6·1 answer
  • True or false? conversion optimization is not an iterative process.
    7·2 answers
  • Sales data, complaints, compliments, and redemption rates for coupons and rebates are types of ________________ marketers use to
    13·1 answer
  • Ryan buys a helmet for $20 and a bike that is on sale for $25 off. At the register, the cashier takes an additional 10% off the
    5·2 answers
  • The ultimate goal of contract damages is: Multiple Choice Put the nonbreaching party where it was before the contract was formed
    13·1 answer
  • Which type of borrowing option would most likely result in the borrower
    12·2 answers
  • Why is tikto* a cool app
    6·1 answer
  • A(n) _________ is the added value or favorable outcome derived from features of a product or service a seller offers.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!