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
tatiyna
3 years ago
13

Stewart Corporation manufactures solar powered calculators. The company can manufacture 1,100,000 calculators a year at a variab

le cost of $2,200,000 and a fixed cost of $1,100,000. Based on management’s projections for next year, 950,000 calculators will be sold at the regular price of $15.00 each. A special order has been received for 230,000 calculators to be sold at a 60% discount off the regular price. Total fixed costs would be unaffected by this order. The company's net operating income will be increased as a result of the special order by: (Do not round your intermediate calculations.)
Business
1 answer:
NeX [460]3 years ago
7 0

Answer:

If the special offer is accepted, the net operating income will decrease in $120,000

Explanation:

Giving the following information:

Total variable cost= $2,200,000

Fixed cost= $1,100,000

Based on management’s projections for next year, 950,000 calculators will be sold at the regular price of $15.00 each. A special order has been received for 230,000 calculators to be sold at a 60% discount off the regular price.

Because the company can't provide the 950,000 units and the 230,000 special offer, the offer will cannibalize sales from the 950,00 units.

Special offer sale price= 15*0.4= $6

Unitary variable cost= 2,200,000/1,100,000= $2 per unit

<u>First, we will calculate the net income without the special offer</u>:

Sales= 950,000*15= 14,250,000

Total variable cost= 950,000*2= (1,900,000)

Contribution margin= 12,350,000

Fixed costs= (1,100,000)

Net operating income= 11,250,000

<u>With the special offer:</u>

Sales= (230,000*6) + (870,000*15)= 14,430,000

Total variable cost= (2,200,000)

Contribution margin= 12,230,000

Fixed costs= (1,100,000)

Net operating income= $11,130,000

If the special offer is accepted, the net operating income will decrease in $120,000

You might be interested in
Which do you think creates more of a challenge for marketers, multiculturalism or multigenerationalism? EXPLAIN
Harlamova29_29 [7]

Multiculturalism is when there are several different cultural or ethnic groups within society. These people differ on culture, race and ethnicities so their values and way of life are unique to their culture.  Multigenerationalism is when there are several different age groups (generations) present within society. I think it is more of a challenge for marketers to market with many different cultures living within society because cultures usually have larger differences over generations. With generations, customs do change and there are differences but they are still of the same nationality and race so the social norms are much more similar.  When there are larger differences it is hard to market and reach all of the potential consumers.

3 0
3 years ago
If someone introduces himself using a formal introduction, you should _____.
stich3 [128]

Answer:

Follow his lead and address him formally

Explanation:

If someone addresses you formally, that is because that person expects the conversation to be formal, or because you both are in a formal enviroment, for example, a work meeting. For this reason, the best to do in such situation is to address the other person formally as well.

6 0
2 years ago
Use the following information of VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect
r-ruslan [8.4K]

Answer:

                                                 VPI Co.

            Cashflow statement for the year ended December 31

                                                                               $

Operating activities                                            

Net income                                                         59,000

Add Depreciation                                                 7600

Less gain from sale of machinery                      (2900)

Increase in Inventory                                          (8,600)

Increase in accounts payable                              3,300

Decrease in accounts  receivable                      <u>  6,600</u>

Cash flow from Operating activities                  65,000

Investing activities

Cash received from sale of  machinery              11,300

Financing activities

Cash paid for dividends                                      (4,600)

Net cashflow                                                        71,700

Cash balance at prior year-end                       <u> </u><u>43,600</u>

Cash balance at current year-end                  <u> 114,300</u>

Explanation:

The indirect method of cashflow statements starts with the cashflows from the operating activities to Financing and then investing activities.

An increase in an asset other than cash is a decrease in cash and vice versa. An increase in a liability is an increase in cash and vice versa. We add or subtract none cash items like depreciation, gain on asset disposal etc.

7 0
2 years ago
Thomas is the owner of a landscaping company that caters to a very wealthy clientele. His company has struggled to differentiate
ankoles [38]

Answer: The correct option is C.

Explanation: From the scenario given above, we can see that Thomas has not shown any intention to replace the expensive team members, the only option in this case would then be to properly utilize their expertise to the advantage of the company.

In order to do this therefore, a SWOT analysis would need to be carried out and utilized in gaining an edge over the competition.

In this case, Thomas would make sure that the expertise of all his team members are brought to bare, the company would analyze the competition to see where it is lacking in customer satisfaction, and then try to gain the upper hand by including features in their product that the competition does not have in theirs.

This strategy will help in achieving a competitive advantage.

5 0
2 years ago
Read 2 more answers
Which type of power production produces the least amount of greenhouse gases?
weeeeeb [17]
I think the answer is Nuclear
5 0
3 years ago
Other questions:
  • Marvin Services Corporation had the following accounts and balances: Accounts payable $ 6,000 Accounts receivable 8,000 Cash 7,0
    5·1 answer
  • If demand shifts to the right when income increases, we can conclude that the good is:_____
    5·1 answer
  • A bc subteam called the ____ is responsible for establishing the core business functions needed to sustain critical business ope
    5·1 answer
  • Which of the following is a feature of a credit card ?
    10·1 answer
  • For each of the following transactions for , state whether the total effect of the transaction results in an increase, decrease,
    8·1 answer
  • Despite the heavy reliance on e-mail, in certain situations calling may be the most efficient channel of communication, whether
    8·1 answer
  • Carl and Nancy Johnson prepared a household budget in an attempt to manage their money better. As part of their budgeting proces
    7·1 answer
  • They plan to use their $40,000 is savings to cover the closing costs the bank will charge them, which are 1% of the amount they
    11·1 answer
  • When Congress passed a tariff in 1828, South Carolina tried to nullify it toa. To increase the price of exported and imported go
    14·1 answer
  • A company reported average total assets of $1,240,000 in Year 1 and $1,510,000 in Year 2. Its net operating cash flow was $102,9
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!