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Phantasy [73]
3 years ago
14

Maize Company incurs a cost of $34 per unit, of which $21 is variable, to make a product that normally sells for $59. A foreign

wholesaler offers to buy 6,100 units at $30 each. Maize will incur additional costs of $2 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity
Business
1 answer:
meriva3 years ago
3 0

Answer:

A.$42,700 increase

B. Yes

Explanation:

A.

Selling price unit $30

Variable cost unit ( 21)

Logo ( 2)

Contribution margin unit $ 7 x 6,100 units = $42,700 increase

Therefore the increase in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity is $42,700

(b) Should Maize Company accept the special order?

YES. Maize company should accept the special order.

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2 years ago
An alcohol server must complete an abc approved rbs training program and pass an abc administered exam within ____ calendar days
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1 year ago
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3 0
3 years ago
List a minimum of four reasons why you might be rejected for a job offer.
zavuch27 [327]

Answer:

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Explanation:

Hope this helps

3 0
3 years ago
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