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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.

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On January 1, 2016, Bailey, Inc. had 84,810 shares of common stock outstanding. The following transactions occurred during 2016:
Pie

Answer:

$2.41

Explanation:

1 January-September 30        84,180*9/12=63,135

1 October-31 December (84,180+30,000)*3/12=28,545

Weighted average of common stocks outstanding =91,680

Earning per share (EPS)=Net Income/Weighted average common stocks

EPS=$221,062/91,680

EPS=2.41

6 0
3 years ago
Effective SCM requires reducing cost, increasing inventory velocity and compressing cycle time. What of the following is true? 1
-Dominant- [34]

Answer:

The answer is: 4) More frequently than not, the three objectives are compatible.

Explanation:

Toyota is famous for its Just in Time (JIT) management. They are the absolute kings of efficient supply chain management and they were able to do it by making the three objectives compatible. That doesn't mean that they all have to be dealt with at the same time and with the same intensity.

Toyota's first goal was to reduce costs and in order to reduce costs they had to increase their inventory turnover. Then they discovered that in order to keep increasing inventory turnover, they had to compress their cycle time. When they were able to compress their cycle time, their turnover increased even more and their costs were lowered. The system produces continuous feedback and their efficiency keeps increasing.

I once visited one of their factories that produces almost 500 pickup trucks per day and every single work station had available inventory for only 4 trucks; only 4 engines, 16 doors, etc. It is amazing how they do it considering that every 3 minutes one truck is fully produced.

The three objectives are not only compatible, but they are absolutely necessary for the SCM to be effective.

7 0
3 years ago
During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 fo
Vadim26 [7]

Answer:

Correct option is D

Explanation:

Factory Overhead         $25,000  

Wages Payable  $25,000

3 0
3 years ago
Unlimited liability for sole proprietors means that​
astraxan [27]

Answer:

Sole proprietors and partners have unlimited liability. The unlimited liability means that if you're unable to repay the debts of the business, your creditors can go after whatever you own

6 0
2 years ago
Suppose that XYZ2 shop Company recorded as a purchase certain goods that it purchased account, with the term FOB shipping point
xxMikexx [17]

Answer:

77

Explanation:

76

3 0
3 years ago
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