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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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Answer:

$2,100

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Data provided in the question

Prepaid rent account before adjustment at the end of the month = $2,800

And, the monthly rent is $700

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4 years ago
Waupaca Company establishes a $400 petty cash fund on September 9. On September 30, the fund shows $122 in cash along with recei
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Answer and Explanation:

The Journal entry is shown below:-

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Here we debited the merchandise Inventory, postage expense, cash short and over and miscellaneous as it is expenses while we credited the petty cash as is reimbursed.

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4 years ago
Marla made a spreadsheet in Excel showing the projected costs for a concert she was putting on. What can Marla enter into cell A
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Marla will use the formula to find the updated cost.

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Because A2 is budget and A4, A6, A8 and A10 all are expenses. So she has to budget-all expenses.

So option A=A2-A4-A6-A8-A10 is true.

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2 years ago
________ is the process of distributing indirect costs to products. cost allocation job cost recording cost pooling cost tracing
tatuchka [14]
I believe the answer is cost allocation.
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3 years ago
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A country's export ratio is Group of answer choices The ratio of imports to GDP. The ratio of imports to exports. The ratio of t
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A country's export ratio is the ratio of imports and exports.

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