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Mademuasel [1]
3 years ago
11

Gallerani Corporation has received a request for a special order of 5,500 units of product A90 for $27.70 each. Product A90's un

it product cost is $27.20, determined as follows:
Direct materials $ 2.95
Direct labor 8.25
Variable manufacturing overhead 7.35
Fixed manufacturing overhead 8.65
Unit product cost $ 27.20
Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $4.00 per unit and that would require an investment of $19,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:

Multiple Choice

$(85,250)

$(38,250)

$2,750

$9,325
Business
1 answer:
trasher [3.6K]3 years ago
7 0

Answer:

$9,325

Explanation:

The computation of Incremental net operating income(loss) is shown below:-

                                             Per unit     Total 5500 units

Incremental revenue               $27.70    $152,350

Incremental costs  

Direct materials                       $2.95         $16,225

Direct labor                             $8.25         $45,375

Variable manufacturing

overhead                                 $7.35          $40,425

Increase in variable costs        $4              $22,000

Purchase of special tool                            $19,000

Total Incremental costs                             $143,025

Incremental net operating income(loss)    $9,325

Therefore the incremental income is $9,325

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8 0
2 years ago
Which of these types of business law deals with trademark issues
Softa [21]
Its has to be B,  it gotta be B
4 0
3 years ago
Arrange the types of investments in the correct order from the least risky to the most risky investment.
sammy [17]
There are many types of investments. Some of them the given types of investment in the list.
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8 0
4 years ago
Read 2 more answers
Giorgio Italian Market bought $4,200 worth of merchandise from Food Suppliers and signed a 90-day, 8% promissory note for the $4
anyanavicka [17]

Answer:

Dr. Cash      $4,200

Cr. Interest Income  $84

Cr. Note Receivable $4,116

Explanation:

Food Suppliers

Interest on the Note = $4,200 x 8% x 90 / 360 = $84

Amount to be recorded = $4,200 - $84 = $4,116

At the Time of Issuance the Journal Entry was

Dr. Note receivable  $4,116

Cr. Sales                    $4,116

So, the Payment of $4,200 will be made.

The Interest Income will be $84

Now the Note Receivable account will be adjusted by receiving cash and recording interest income.

5 0
3 years ago
You want to buy a house and will need to borrow $295,000. The interest rate on your loan is 6.37 percent compounded monthly and
svetlana [45]

Answer:

$1,839.45

Explanation:

PV =  P * [1-(1+r)^-n / r]

n = 30*12=360 months, r = 6.37%/12 = 0.5308% (monthly)

295,000 = P*[1 - (1+0.005308)^-360 / 0.005308}

295,000 = P * $160.3739

P = $295,000 / $160.3739

P = $1,839.45

So, the monthly mortgage payments is $1,839.45.

4 0
3 years ago
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