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erastovalidia [21]
3 years ago
7

It costs Garner Company $12 of variable and $5 of fixedcosts to produce one bathroom scale which normally sells for $35. Aforeig

n wholesaler offers to purchase 2,000 scales at $15 each.Garner would incur special shipping costs of $1 per scale if theorder were accepted. Garner has sufficient unused capacity toproduce the 2,000 scales. If the special order is accepted, whatwill be the effect on net income?
A. $6,000 decrease
B. $4,000 decrease
C. $30,000 increase
D. $4,000 increase
Business
1 answer:
Anettt [7]3 years ago
4 0

Answer:

D. $4,000 increase

Explanation:

Net Income = Sales revenue - Variable costs - Special costs (for executing this order)

15 X 3,000 - 12 X 3,000 - 1 X 3,000

Or, Net Income = 30,000 - 24,000 - 2,000

Or, Net Income = 4,000

Thus, option D is the correct answer.

You might be interested in
Why wont a bussiness charge 500 for a table that they can make for 100
lys-0071 [83]

Answer:

I am not a business student but I think this is common sense.

Yes most business people do that because they have to make sales, they pay taxes, buy raw materials, time wastage, fatigue, health related issues ,care for their family and would not want to go broke so I think that's most of it.

Hope I helped

3 0
3 years ago
When diversified firms use the revenues from profitable businesses to subsidize the operations of another business and then set
Over [174]

Answer:

<u>Predatory</u>.

Explanation:

This predatory pricing strategy is used when a company aims to create entry barriers for new competitors, significantly lower the price to gain new customers and drive competitors away. The cons of this strategy is that in addition to being illegal, lost revenue is not always recovered, and there are other factors that drive competitors away, not just price.

7 0
3 years ago
Rienzi Farms grows sugar cane and soybeans on its 600 acres of land. An acre of soybeans requires 3 hours to plant and brings in
mezya [45]

Answer:

133 acres of sugar cane

and 300 of soybean provide a profit of $ 733,000

Explanation:

We setup the fromulas and use excel solver:

labor hours:  3 x sugar acres + 4 x soybean <= 1,600

profit  = 1,000 x sugar acres + 2,000 soybean

with the restriction soybean <= 300

                 SOLVER  

              acres          hours             PROFIT

sugar cane 133  x 3 = 399       x 1,000 =    133,000

soybeans 300  x 4 = 1,200           x 2,000 =<u>  600,000  </u>

                                                  TOTAL           733,000

6 0
3 years ago
The more information an entrepreneur acquires during the process of _____, the higher the chance that his or her predictions wil
Mashutka [201]

The more information an entrepreneur acquires during the process of feasibility analysis, the higher the chance that his or her predictions will be close to the mark, risk will be reduced, and uncertainty managed.

<h3><u>Explanation:</u></h3>

The study or examination about the extent to which the proposed idea will be practical and can be achieved at an economic manner refers to the feasibility study. In business it is very essential to decide whether to take up a project or not. It also helps in narrowing the project and plan accordingly.

It also helps in making predictions about whether the expected results can be attained from a particular idea or a project. Thus during the feasibility study the entrepreneur must obtain as much information as possible as it helps him in the evaluation of risks, uncertainties and other related things.

7 0
2 years ago
Tune Products, Inc., offers to sell to Unlimited Sales Company one hundred MP3 players at $50 a piece, subject to certain specif
4vir4ik [10]

Answer:

765445556677778

Explanation:

6 0
3 years ago
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