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
WINSTONCH [101]
2 years ago
11

The company has an opportunity to sell 40,000 additional units at $12 per unit. The additional sales would not affect its curren

t expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 16% and (2) administrative expenses would increase by $172,000.
Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit.

Business
1 answer:
barxatty [35]2 years ago
8 0

Answer:

$1,576,000

Explanation:

The computation of the combined total net income is shown below:

<u>Particulars     Normal volume  Additional volume  Combined total </u>

Sales              $6,000,000         $480,000               $6,480,000

                                                (40,000 × $12)

Less: Costs and expenses    

Direct material $800,000            $80,000               $880,000

                                          ($800,000  ÷ 400,000 × 40,000)

Direct labour    $1,600,000         $160,000             $1,760,000

                                        ($1,600,000 ÷ 400,000 × 40,000)

Overhead        $400,000          $64,000                $464,000

                                                ($400,000 × 16%)

Selling expenses $600,000     $0                         $600,000

Administrative

expense           $1,028,000   $172,000                $1,200,000

Total costs

and expenses $4,428,000    $476,000             $4,904,000

Incremental

income

(loss) from

new busines   $1,572,000   $4,000               $1,576,000

We assume reduced price of $12 per unit instead of $13 per unit

You might be interested in
John Joos is the owner and operator of Way to Go LLC, a motivational consulting business. At the end of its accounting period, D
ivolga24 [154]

Answer:

a) December 31, 2013 Owner's equity = 508,000

b) December 31, 2014 Owner's equity = 420,000

Explanation:

Accounting Equation Formula: Owner's Equity = Assets - Liabilities  

A) Way to Go LLC December 31, 2013

Owner's Equity = Assets – Liabilities

Owner's Equity = 669,000 – 161,000

Owner's Equity = 508,000

B) Way to Go LLC  December 31, 2014

Owner's Equity = Assets – Liabilities

Owner's Equity = (669,000-127,000) – (161,000-39,000)

Owner's Equity = 420,000

6 0
2 years ago
A reason for government involvement in a market economy is:
larisa [96]

Answer:

d. All of these answers are correct.

Explanation:

A market economy is where production decisions are made by the forces of demand and supply. Means of production are privately owned .

The government intervenes in a market economy for all the above stated reasons.

I hope my answer helps you.

5 0
3 years ago
the company maintains a 40% dividend payout ratio. The net income is $12,493. The total on the balance sheet is $106,900. What i
PilotLPTM [1.2K]

Internal growth rate is calculated by dividing retained earnings by total assets.

Retained earnings is calculated by subtracting dividends from net income

So: Retained earnings would be 12,493 - (12,493 X .4)

Then to find internal growth rate take your retained earning from above and divide by total assets (the total on the balance sheet : 106,900).

4 0
3 years ago
A representative from a prestigious industry association just emailed. She asks for your participation on an expert panel that w
Verdich [7]

Answer:

b) Thank the representative and accept the offer to cover expenses of your participation.

Explanation:

Since the representative asked for your participation on an expert panel that will be held at an upcoming international professional conference. The representative offered to pay for travel and lodgings for you and a guest to the conference.

The response that be most effective for helping you to make an ethical decision is to first of all, thank the representative and accept the offer to cover expenses of your participation.

As a sign of gratitude, you should thank them for the honor and privilege bestowed on you to be a part of the panel.

Also, having them offering to pay your travel and lodging costs would help you channel your energy into preparing and equipping yourself with necessary information and knowledge about the conference.

7 0
2 years ago
Lisa vozniak income statememt college accounting
lisabon 2012 [21]
Https://www.bartleby.com/solution-answer/chapter-2-problem-1mp-college-accounting-chapters-1-27-23rd-edition/9781337794756/mastery-problem-lisa-vozniak-started-her-own-business-we-do-windows-she-offers-interior-and/f6d28fa7-6a5b-11e9-8385-02ee952b546e
4 0
2 years ago
Other questions:
  • Flash E - Card Manufacturing manufactures software parts for the computer software systems that produce e - cards. The Flash II
    13·1 answer
  • Which factor is typically not a requisite feature of setting a career goal?
    13·1 answer
  • If a government form for a bank financial report begins with the letters FR, which government agency maintains the
    11·2 answers
  • ________ policy is when a central bank acts to increase the money supply in an effort to stimulate the economy. Choose one:
    11·1 answer
  • Miller Company makes two types of chairs. One of the chairs is a rocking chair. The other is a straight-back chair. Both chairs
    5·2 answers
  • Mojo Mining has a bond outstanding that sells for $1,061 and matures in 25 years. The bond pays semiannual coupons and has a cou
    12·1 answer
  • Matt and Sarah are selling their home and moving to a new neighborhood. Sarah is going to start college in the fall. She did NOT
    14·1 answer
  • George purchased a futures contract at 349. The contract is on 2500 units, requires a 10% margin deposit and is priced in cents
    12·1 answer
  • In the Toyota Production System, waste and inefficiency are referred to as __________, and the ongoing effort to reduce this is
    12·1 answer
  • a company produces a single product. variable production costs are $14.00 per unit and variable selling and administrative expen
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!