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erica [24]
3 years ago
13

It costs $60 of variable and $40 of fixed costs to produce rocking chair which normally sells for $150. A wholesaler offers to p

urchase 5,000 rocking chairs at $125 each. Georgia would incur special shipping costs of $10 per rocking chair if the order were accepted. Georgia has sufficient unused capacity to produce the 5,000 rocking chairs. If the special order is accepted, what will be the effect on net income?
Business
1 answer:
Tju [1.3M]3 years ago
7 0

Answer:

Total effect on income= $275,000

Explanation:

Giving the following information:

It costs $60 of variable and $40 of fixed costs to produce a rocking chair which normally sells for $150. A wholesaler offers to purchase 5,000 rocking chairs at $125 each. Georgia would incur special shipping costs of $10 per rocking chair if the order were accepted. Georgia has sufficient unused capacity to produce the 5,000 rocking chairs.

Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.

Unitary variable costs= 60 + 10= 70

Contribution margin= 125 - 70= 55

Total effect on income= 5,000*55= $275,000

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John manufactures household furniture. His start-up costs, including tools, plans, and advertising, total \$5000$5000dollar sign
scZoUnD [109]

Answer:

$5,000 + $350f

Explanation:

The computation of the production cost in dollars is shown

Here we use the equation form

The start up cost is $5,000

Labor, material cost $350

Now if he makes f pieces of furniture so, his production cost would be

= Startup cost + labor, material cost

= $5,000 + $350f

Hence, this is the answer and the same is to be provided

8 0
3 years ago
A regression line is the line that best fits the data, but this does not mean that the fit is good. In other words, there can st
horsena [70]

Answer:

Larger-sq and small Se.

Explanation:

Regression line is a line that clearly describes the behavior of a given set of data.

Regression lines are very essential for forecasting processes. The importance of the line is to describe the interrelation of a dependent variable (Y variable) with one or many independent variables (X variable).

An analyst can forecast future behaviors of the dependent variable by making use of the equation gotten the regression line. This is done by inputting different values for the independent ones. Regression lines are frequently employed in the financial sector.

Financial analysts make use of linear regressions to forecast stock prices, commodity prices and also to carry out valuations for many different securities. Companies use regressions for the purpose of forecasting sales, inventories and a lot of other variables that are needed for strategy and planning. The regression line formula is represented below:

(Y = a + bX + u)

6 0
3 years ago
If it takes a supplier 25 days to deliver an order once it has been placed and the standard deviation of daily demand is 20, whi
Volgvan

Answer:

option (B) 100

Explanation:

Data provided in the question:

Number of days supplier takes to deliver an order once it has been placed i.e the lead time = 25 days

Standard deviation of daily demand = 20

Now,

Standard deviation of usage during lead time

= Standard deviation of daily demand × √(Lead time)

= 20 × √25

= 20 × 5

= 100

Hence,

The answer is option (B) 100

7 0
3 years ago
The 5 specific forces acting as stimulant for change
Serjik [45]

Answer:

1. Technology.

2. Social trends.

3. Economic shocks.

4. Political.

5. Nature of the workforce.

Explanation:

According to the amiable philosopher and mathematician, Alfred North Whitehead, "The art of progress is to preserve order amid change and to preserve change amid order."

The 5 specific forces acting as stimulant for change in an organization or business environment are;

1. Technology: it is a major external force, organizations should make use of new technologies, so as to maximize efficiency and increase productivity.

2. Social trends: social media changes can bring individuals together and influence their interests to share opinions, cultures perception and ideas.

3. Economic shocks: indices of gross domestic products such as unemployment, acquisitions, bankruptcy, recession impacts an organization.

4. Political: government policies, regulations and restrictions such as tax, minimum wage etc can cause a change in a firm. Companies should ensure they are operating at top notch in the competitive market.

5. Nature of the workforce: they should be able to adapt or respond to economic activities, such as demographic, immigration, multicultural society, etc.

Change agents in an organization are individuals acting as catalysts by assuming responsibilities for managing any of the aforementioned specific forces acting as stimulant for change.

7 0
3 years ago
The following are selected 2020 transactions of Astin Corporation. Sept. 1 Purchased inventory from Encino Company on account fo
masya89 [10]

Answer:

inventory  50,000 debit

    accounts payable    50,000 credit

--to record purchase of goods--

accounts payable 50,000 debit

      notes payables      50,000 credit

--to record teh issued promissory note to setle the account--

cash                                  50,000 debit

discount on note payable 4,000 debit

  notes payable                            54,000 credit

--to record the discounted note--

Explanation:

a)  we record the purchase as always.

b) we are trading a liability for another. We do not receive for the note.

c) we discount on the note and we are goind to declare the interest expense at maturity or year-end against this discount.

5 0
3 years ago
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