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marysya [2.9K]
3 years ago
7

Fox, Inc. manufactures and sells pens for $7 each. Walton Corp. has offered Fox, Inc. $3 per pen for a one-time order of 3,500 p

ens. The total manufacturing cost per pen, using absorption costing, is $1 per unit and consists of variable costs of $0.75 per pen and fixed overhead costs of $0.25 per pen. Assume that Fox, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special pricing order?
Business
1 answer:
sasho [114]3 years ago
8 0

Answer:

Operating income will rise by $7,500

Explanation:

If the Fox, Inc. can complete the order and it wouldn´t affect them inthe regular sales, they would just have to calculate the price of making each pen, which is one dollar per pen, with absorption costs, and then withdraw that from the income they will make for the sale:

3,500 pens at 3 dollars=10,500

We withdraw the 3,500 from making them:

10,500-3,500= 7,000

So the income will increase by $7,000 is they take the order.

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El Salvador has a population density of about 620 people per square mile and neighboring Honduras a population density of about
BaLLatris [955]

Answer:

have a higher labor-to-land ratio than its imports from Honduras

Explanation:

The factor proportions theory  (or Heckscher-Ohlin model) of trade states that countries will export the goods which they can produce using their abundant factors of production. For example, countries like Japan that have abundance of labor force and capital, but very little land, will produce and export industrial goods that require a lot of labor and capital. On the other hand, countries like Argentina which have abundant labor and land, will export agricultural products.

in this case, El Salvador compared to Honduras has abundant labor, so the products that El Salvador exports to Honduras will have a higher labor-to-land due to the abundance of labor.

7 0
3 years ago
The manufacturer of the gift boxes that Sylvia sells has offered her an incentive. What is this called?
yan [13]
The manufacturer of the gift boxes that Sylvia sells has offered her an incentive. What is this called? Push money. Push money is an incentive that is paid by a manufacturer to distributor so that they will sell their products. When the distributor sells the products for the manufacturer both end up making money overtime. It benefits the manufacturer to give an incentive for the distributor to sell their items because of the profit it ends up generating for the manufacturer. 
4 0
3 years ago
the time period between when a registration is filed with the securities and exchange commission (sec) and the effective date is
katrin2010 [14]

The required holding period must be satisfied first. The holding period for a public company is six months, and it starts on the day that a holder purchases and pays in full for securities. The holding period is one year for a business that is exempt from SEC filing requirements

The cooling-off period.

<h3>What does registration with the Securities and Exchange Commission SEC require?</h3>
  • A description of the company's assets and operations, a description of the security being offered for sale, and other pertinent information are all included in the registration forms that a company submits to the SEC. information on the organization's management; and.
  • The required holding period must be satisfied first. The holding period for a public company is six months, and it starts on the day that a holder purchases and pays in full for securities. The holding period is one year for a business that is exempt from SEC filing requirements.

To learn more about : Organization's management

Ref : brainly.com/question/28072798

#SPJ4

4 0
1 year ago
The Security Market Line (SML) shows the relationship between stocks' required rates of return (measured on the vertical axis) a
natka813 [3]

Answer:

True

Explanation:

The reason is that the straight line equation is used to illustrate the relation between the rate of return and the beta factor and is given as under:

Y = a + bX

Here

a = Rf

B = Risk premium = Rm - Rf

X = Beta Factor

So this means the security market line is the graphical presentation of capital asset pricing model and illustrates why the increase in beta factor increases the required rate of return, the reason is that the the overall required return Y of the investment will start increasing with the increase in the beta factor.

So the statement is true.

5 0
3 years ago
Which phrase describes the substitution effect?
finlep [7]
I think it is 
<span>D.)substituting existing technology with a new technology to produce more goods
I hope this helps </span>
8 0
3 years ago
Read 2 more answers
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