The company should accept the special order because it will get an additional profit of $4,000 ($12,500 - $7,500 - $1,000) for the special order. This additional profit amount can be acquired by separating the effect from the special order on each cost and sales of the company's business. The sales should increase by $12,500 ($5 x 2500 unit) amount if the job is taken and the variable cost should increase by $7,500 ($3 x 2500 unit). Lastly, the fixed cost should increase by $1,000 (the new machine).
When a company gains a competitive advantage over an action that becomes mandatory in the line of business, such as providing package tracking capability, this is an example of profitability factors becoming productivity factors over time.
<h3 /><h3>What are profitability factors?</h3>
It corresponds to factors that enable a company to be positioned and competitive in the market in which it operates, determined by internal and external agents, such as:
- Demand force
- Advertsing
- Substitute products
- Economy of scale
- Costs
Therefore, an organization's profitability factors became productivity factors by instituting new forms of work management that generated competitive advantages for the organization.
So, the correct answer is:
D. Profitability factors; productivity factors.
Find out more information about profitability here:
brainly.com/question/16755022
<u>Solution and Explanation:</u>
Breakeven point = Fixed cost divide by Contribution margin
Contribution margin = Sales minus Variable cost.
Fixed cost
Particular Amount
Salaries $5000
Utilities $1100
Depreciation $1200
Maintenance $780
Total Fixed cost = $8,080.
Variable cost =Maid services plus Other cost = $7 plus $13 = $20
Contribution = $40 minus $20 = $20.
Breakeven point in number = $8080 divide 20 = 404 rented rooms per month.
Breakeven point in $ = Breakeven point rented rooms × rent cost.
=> 404 rooms multiply $40 = $16,160.
Answer:
Incremental loss of Spock = $19,800
Incremental profit of Uhura = $12,300
Incremental profit of Sulu = $94,200
Explanation:
Note: See the attached excel for the determination the incremental profit or loss that each of the three joint products.
In the attached excl file, the following formulae are used:
a. Incremental sales value = Sales value of processed product - Sales value at split off point
b. Incremental profit (loss) = Incremental sales value - Costs to process further
