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kirill [66]
3 years ago
8

Wallyworld Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: Di

rect materials $12 Direct labor 36 Variable manufacturing overhead 18 Fixed manufacturing overhead 24 The company has the capacity to produce 90,000 units. The product regularly sells for $120. If a wholesaler offered to buy 4,500 units for $100 each, the effect of the special order on income would be a
Business
1 answer:
atroni [7]3 years ago
5 0

Answer:

Income increased by $315,000

Explanation:

Since there is spare capacity available, we assume there are no incremental fixed costs and as such we only analyze relevant variable costs that vary with the order to identify the possible income effect.

Profit per unit = Order Selling price - Direct + Variable costs

Profit = 100 - 12 - 18 = $70

Total profit from the order = 70*4500 = $315,000

We do not include fixed costs as these will have to be paid regardless of the order. These fixed overheads are probably already absorbed fully given the current production level of 84000 units.

Hope that helps.

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Fremont Enterprises has an expected return of 18 % and Laurelhurst News has an expected return of 21 %. If you put 43 % of your
Umnica [9.8K]

Answer: 19.29%

Explanation:

From the question, Fremont Enterprises has an expected return of 18% and 57% of the portfolio is put in​ Fremont. The portfolio return of Fremont will be the expected return multiplied by the weight. This will be:

= 18% × 57%

= 18 × 0.57

= 10.26%

We are also told that Laurelhurst News has an expected return of 21% and that 43% of the portfolio is put in​ Laurelhurst News. The portfolio return here will be the expected return multiplied by the weight. This will be:

= 21% × 43%

= 21% × 0.43

= 9.03%

The the expected return of the portfolio will now be:

= 10.26% + 9.03%

= 19.29%

4 0
3 years ago
A microeconomist — as opposed to a macroeconomist — might study
Rudiy27
Microeconomics is the study of the effects of changes to small individual decisions  A)  Is huge, study of the whole country.  B)  Is huge, nationwide production increase C) this effects just one industry.   D) again huge, nationwide effects of interest rates on GDP.  So C.

3 0
3 years ago
I need to solve this question with a formal
asambeis [7]

Answer:

yes

Explanation:

he's been said to do with this was also like

3 0
3 years ago
Certain criteria must be satisfied if a measurement or observation is to be believed. will the criteria necessarily be as strict
Schach [20]

An unexpected result is examined a lot more closely, since it must disagree with some currently accepted theory to be accepted as unexpected. If something is expected, we generally don't question it, although this is sometimes a tragic mistake and may cost a lot more for a person.

4 0
3 years ago
The amount of earnings distributed to stockholders can be found in the income statement.
evablogger [386]

Answer:

Unearned membership revenue of $9,000

Explanation:

The sales on credit during January 2017 was valued at $12,000 ($200 x 60).

In March 2017, customers paid $3,000, leaving the balance of $9,000 outstanding.

Since the season for which sales and collections were made starts March 1, 2017, when reporting the financial statements for the period ending March 31, 2017, the Membership Revenue would be $3,000 only and the balance $9,000 would be reported as Unearned Membership Revenue in the Balance Sheet with a further $9,000 reported in the Accounts Receivable to balance the records.

This shows that Unearned Membership Revenue of $9,000 is the only valid statement.

3 0
3 years ago
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