Answer:
There will be an increase of $6,200 , If the special order is accepted
Explanation:
For computing the net income effect first we have to find out the net income per scale which is a difference between offer purchase price and variable cost per unit
In mathematically,
Net income = Offer purchase price - variable cost per unit
where,
Offer purchase price is $35
And, the variable cost is $12 per unit plus it incur special shipping charges which is also a part of the variable cost.
So, total variable cost = variable cost per unit + Special shipping charges per scale
= $12 + $1
= $13
So, Net income is
= $15 - $13
= $2 per unit
Now for producing the 3100 scales, the net income should be multiply with the production unit
= Net income × Production unit
= 3,100 × 2
= $6,200
Fixed cost is fixed whether the production level changes or not. Thus, it is not be considered.
Hence, there will be an increase of $6,200 , If the special order is accepted
The company's return on investment ROI would be 12.5%
What does a favourable return on investment mean?
The profit from an investment is divided by the investment's cost to determine the return on investment (ROI). When represented as a percentage, an investment with a profit of $100 and a cost of $100 would have a ROI of 1, or 100%. Generally speaking, a yearly ROI of around 7% or higher is regarded as a decent ROI for an investment in stocks. This also refers to the S&P 500's average annual return when inflation is taken into account of the company to increase the profit margin.
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Answer:
C. Scenario Analysis.
Explanation:
As Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales price, and the cost estimates. The type of analysis that Jamie is doing is best described as scenario analysis. Scenario analysis is basically conducted to know to estimate the unfavorable events development in the market and within the firm as well. It is applied to know about the worst possible situation which can happen and how it can effect the market as well as organization.
Answer:
Global strategy; Transnational strategy
Explanations:
Companies should choose a global strategy or transnational strategy
A global strategy is a technique used by a firm to expand and compete in the global market. It is the plans made by a firm to grow beyond it's border.
Global strategy covers three other strategies
1. International strategy
2. Multinational strategy
3. Global strategy
A firm adopt global strategy in order to increase its sales of products and Profit.
Transnational strategy is a technique which allows firms to expand sales of goods and services while taking into consideration the difference in culture of people.
Transnational occurs when a company in China wants to expand to other countries like Nigeria. For China to have a smooth operation, it must first take into cognizance our culture and believe.
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