1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Use the below information to answer the following question.
lianna [129]

Answer:

$2,253.35

Explanation:

external financing needed = EFN = [(total assets/total sales) x ($ Δ sales)] - [(total current liabilities/total sales) x ($ Δ sales)] - [profit margin x forecasted sales in $ x (1 - dividend payout ratio)]

total assets = $48,900

total sales = $42,700

$ Δ sales = $5,978

current liabilities = $3,650

profit margin = net income / sales = 0.129

forecasted sales = $48,678

dividends payout ratio = dividends / net income = 0.35

EFN = [($48,900/$42,700) x ($5,978)] - [($3,650/$42,700) x ($5,978)] - [0.129 x $48,678 x (1 - 0.35)]

EFN = $6,846 - $511 - $4,081.65 = $2,253.35

7 0
3 years ago
Suppose Americans buy inputs from foreigners. When the price of foreign inputs falls, the U.S. SRAS curve __________, which tend
Mademuasel [1]

When the price of foreign inputs falls, the U.S. SRAS curve option (b)i.e, shifts rightward; which tends to reduce the U.S. price level.

<h3>What is the SRAS curve?</h3>

We can understand how each firm in an economy reacts to price stickiness using the short-run aggregate supply curve (SRAS). The SRAS curve will have an upward slope when prices are stable. According to the SRAS curve, more output results from higher price levels.

The cost of labor, or wages, and the price of imported commodities that we use as inputs for other products are two other significant variables that may cause the SRAS curve to change in addition to energy prices.

A higher level of productivity causes the SRAS curve to move to the right because businesses can produce more output at all price points.

To know more about SRAS curve refer to:  brainly.com/question/16909327

#SPJ4

7 0
2 years ago
Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and
Taya2010 [7]

Answer: The correct answer is "D. the benefit of lower prices to be greater than the cost of reduced services and less convenience.".

Explanation: Consumers obviously consider the benefit of lower prices to be greater than the cost of reduced services and less convenience.

Discount and no-frills airlines have less costs to cover so they can offer lower and more affordable prices for consumers. These airlines have been successful because it turns out that consumers value or prefer the lower price rather than the additional services.

3 0
3 years ago
Coronado Industries had 293000 shares of common stock issued and outstanding at December 31, 2020. No common stock was issued du
Gnesinka [82]

Answer:

$3.72

Explanation:

earnings per common share = earning attributable to holder of common stock ÷ weighted average number of common stocks outstanding

therefore,

earnings per common share = $3.72

5 0
2 years ago
On January 3, 2019, Carey discovers his diamond bracelet has been stolen. The bracelet had a fair market value and adjusted basi
Mama L [17]

Answer: $1,900

Explanation:

Theft loss deduction is calculated by adjusting the fair market value of the asset for a theft loss floor limitation of $100 and 10% of the person's AGI.

Theft loss deduction is:

= Fair value -Theft floor limitation - 10% of AGI

= 7,000 - 100 - (10% * 50,000)

= $1,900

3 0
3 years ago
Other questions:
  • Distinguish between the short run and the long run. In the short​ run, ______. In the long​ run, ______.
    10·1 answer
  • Marriott International, Inc., is a leading global lodging company, with more than 6,000 properties in 122 countries. Information
    8·1 answer
  • You are caring for radiation victims. What is the most important factor that you should consider to assess a client's chance of
    13·1 answer
  • To help finance a major expansion, Top Fashion Company sold a noncallable bond several years ago that now has 20 years to maturi
    7·1 answer
  • The demand for organic produce is growing. Green Acres Farms grows only organic vegetables. In a SWOT​ analysis, the rising dema
    6·1 answer
  • Match the words with the definitions please and thank you
    10·1 answer
  • The rapid growth of the Chinese economy should benefit U.S. consumers as they have access to less-expensive consumer goods. make
    15·1 answer
  • Match the cause for the negatively sloped aggregate demand curve with the correct term.
    11·1 answer
  • The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8
    11·1 answer
  • Relation between occupation and education any 5 point​
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!