Answer:
d. None of the answers is correct
$17,000 increase
Explanation:
As per the given question the solution is provided below:-
For reaching the change in income if the special order is accepted we need to follow some steps which are as follows:-
Step 1
Variable manufacturing cost per unit = Variable manufacturing costs ÷ Sale units
= $240,000 ÷ 24,000
= $10
Step 2
Cost related with special order = Number of units × Variable manufacturing cost per unit
= 3,400 × $10
= $34,000
Step 3
Income from special order = Number of units × Selling price
= 3,400 × $15
= $51,000
Therefore the Change in income if special order is accepted = Income from special order- Cost related with special order
= $51,000 - $34,000
= $17,000 increase
d. None of the answers is correct the right answer is $17,000 increase.
To reach the change in income if special order is accepted we simply put the values into formula.
Answer:
The contract is void since it attempts to contract for services that are illegal
Explanation:
Since there is a contract between the Mr Green and Mr Blue and they already know that the Mr blue has already caught the number of crabs i.e permitted in the season but they agree to exceed the quota
Therefore the status should be void as they want to exceed which is not permitted that results in illegal service contracts
Hence, there is a void contract
Answer:
393 units will need to be sold to breakeven
Explanation:
Break even point is the point where a Company makes neither makes a profit nor a loss.
Step 1 : Calculate new variables
New Sales = $250 x 1.40 = $350
Variable Costs = $250 x 30 % = $75
New Fixed Costs = $120,000 x 90 % = $108,000
Step 2 : Break even (units)
Break even (units) = Fixed Costs ÷ Contribution per unit
= $108,000 ÷ ($350 - $75)
= 393 units
Thus, 393 units will need to be sold to breakeven
Answer:
The Oscar's fixed costs per month is $2,500
Explanation:
Fixed cost: The fixed cost is that cost in which the amount is remain fixed whether production level change or not, that means it does not have any effect on the production level.
In the given question,
Monthly rent is $2,500 which is fixed so, it would be considered as fixed cost
The per hour pay and electrical bill depend upon the total hours of operation which means if the more hours, the workers are engaged so more pay will be give to them, and more electricity bill come.
And if they are working few hours, than less rate and less electrical bill will be there which reflects the variable cost. So, these cost are considered variable cost. Thu, it would not be included in the fixed cost.
Hence, Oscar's fixed costs per month is $2,500
Answer:
0.104
Explanation:
We are to determine the yield to maturity of the bond
yield to maturity can be determined using a financial calculator
Cash flow in year 0 = -500
Cash flow each year from year 1 to 6 = 0
Cash flow in year 7 = 1000
YTM = 10.4%
To find the YTM using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
