Answer:
$62,100
Explanation:
Given that,
Sales price per unit = $ 40
Variable costs per unit:
Manufacturing = $ 23
Marketing and administrative = $ 8
Total fixed costs:
Manufacturing = $ 76,000
Marketing and administrative = $24,000
Total incremental costs:
= Variable manufacturing + Variable marketing and administrative
= (6,900 × $23) + (6,900 × $8)
= $158,700 + $55,200
= $213,900
Incremental income:
= Incremental revenue - Total incremental costs
= (6,900 × $40) - $213,900
= $276,000 - $213,900
= $62,100
Therefore, the operating income increases by $62,100.
Answer:
A) The issuance of bonds on December 31, 2016.
Dr Cash 104,031
Cr Bonds payable 96,000
Cr Premium on bonds payable 8,031
B) The first interest payment on June 30, 2017.
Dr Interest expense 3,517
Dr Premium on bonds payable 803
Cr Cash 4,320
C) The second interest payment on December 31, 2017.
Dr Interest expense 3,517
Dr Premium on bonds payable 803
Cr Cash 4,320
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Hope this helped!