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
Leona [35]
3 years ago
9

Walnut has received a special order for 2,700 units of its product at a special price of $200. The product normally sells for $2

60 and has the following manufacturing costs: Per unit Direct materials $ 64 Direct labor 34 Variable manufacturing overhead 44 Fixed manufacturing overhead 103 Unit cost $ 245 Walnut is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Walnut accepts the order, what effect will the order have on the company’s short-term profit?
a. $162,000 decrease
b. $121,500 increase
c. $121,500 decrease
d. Zero.
Business
1 answer:
kondor19780726 [428]3 years ago
5 0

Answer:

a. $162,000 decrease

Explanation:

Sales                                                                          $540,000

(2700 unit * $200)

Less:

Direct materials                                  $172,800

(2700 unit * 64)

Direct labor                                         $91,800

(2,700 unit * $34)

Variable manufacturing overhead     $118,800

(2700 unit * $44)

Contribution loss from existing sale  <u>$318,600</u>       <u>$702,000</u>

2700 unit * ($260-$64-$34-$44)

Effect on Net operating income                              <u>-$162,000</u>

You might be interested in
When choosing a type of media to use what should be considered? Why?
marusya05 [52]

Answer:

sanp

Explanation:

because evry one of my frindis use it

8 0
3 years ago
The title of this talk is “Profit’s Not Always the Point.” But do you think profit is an added perk for companies that make the
Fantom [35]

Explanation:

<h2><em><u>The title of this talk is “Profit's Not Always the Point.” But do you think profit is an added perk for companies that make the effort to promote positive social change? Explain. Yes, if you can promote social change and make money it is great. Their doing what they said they would and making money.</u></em></h2><h2 />
7 0
2 years ago
Bonita Realty Management Co. received a check for $32,400 on August 1, which represents a one year advance payment of rent on an
ludmilkaskok [199]

Answer:

Explanation:

The adjusted journal entry is shown below:

Unearned rent revenue A/c Dr

      To Rent revenue A/c

(Being the adjusted entry of rent is recorded)

The computation of the rent revenue is shown below:

= Received amount × number of months ÷ (total number of months in a year)

= $32,400 × (5 months ÷ 12 months)

= $13,500

The 5 months is calculated from August 1 to December 31

3 0
3 years ago
You are the newly assigned project manager to a major IT upgrade project in your global company. How will you determine the risk
kap26 [50]

Answer:

I have to identify the risk factors in the project and then gauge the willingness of the company to take such risks.

Explanation:

Risk tolerance is the willingness of an organization or an individual to take certain risks. The risk tolerance level of a person or organization can be classified as either high or low. For a project manager who wants to determine the risk tolerances associated with his project, he has to first identify the risk factors, and then try to know the risk level and if indeed this level is acceptable within the organization's culture and standard.

The project manager would do well to plot a graph that would show the probability of a risky action happening or not. A risk tolerance line is now obtained from where the project manager can know if that risk is tolerable by organization standards. The extent of job security would also help in determining the amount of risk a manager can take. However, they are still expected to stay within the standards of the organization.

8 0
3 years ago
Disruptive innovations are more likely to come from large companies with extensive resources.
qaws [65]

Answer:

a. True

Explanation:

  • A disruptive innovation that is an innovation that is created by a new market and a value networks and eventually destroys a new market and established a market-leading firm.
  • It overtakes an existing market and are tended to be produced for the outsiders and entrepreneurs and startups and rather than the existing market companies and are a set of complex systems.
5 0
3 years ago
Other questions:
  • On July 1, 2019, Sheffield Corp. pays $20,700 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fisca
    14·1 answer
  • What is the rate that the federal reserve banks charge financial institutions for loans called?
    8·1 answer
  • Markland First National Bank of Rolla utilizes Kanban techniques in its check processing facility. The fol-lowing information is
    12·1 answer
  • TB Problem Qu. 1-288 Balerio Corporation's relevant ...Balerio Corporation's relevant range of activity is 8,000 units to 11,000
    9·1 answer
  • Catherine wanted to purchase a digital camera. Hence, she visited an online retailer's website to learn more about the different
    10·1 answer
  • RKI Instruments borrowed $4,300,000 from a private equity firm for expansion of its facility for manufacturing carbon monoxide m
    6·1 answer
  • What is a commodity?
    12·2 answers
  • Approach Company, which applies overhead to production on the basis of machine hours, reported the following data for the period
    10·1 answer
  • ABC Company listed the following data for the current year:
    5·1 answer
  • Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, I
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!