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inessss [21]
3 years ago
7

Braizen, Inc. produces a product with a $30 per-unit variable cost and an $80 per-unit sales price. Fixed manufacturing overhead

costs are $100,000. The firm has a one-time opportunity to sell an additional 1,000 units at $60 each that would not affect its current sales. Assuming the company has sufficient capacity to produce the additional units, how would the acceptance of the special order affect net income?
Business
1 answer:
marysya [2.9K]3 years ago
4 0

Answer:

Net income will increase by $30,000

Explanation:

In this case the company has already made its regular sales and charged the entire fixed cost, also provided that the additional units can be produced, as the company has sufficient capacity, which means no additional fixed cost will be incurred. In that case, entire contribution margin from this sale will be added to increase the net income from regular sales.

Special order quantity = 1,000 units

Contribution= $60 - $30 = $30 per unit.

Total contribution from special order = 1,000 X $30 = $30,000

Now by this amount of $30,000 net income will increase.

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Which is the primary reason to issue stock?A.To help investors earn higherrate of return B. To rise money to grow the company C.
tatyana61 [14]
B. To raise money to a grow a company. 

Stock is equity in a company that is used to help fund the expenses of a company, particularly when they are looking to grow beyond their current revenue sources. It is most useful when a company anticipates growing its revenues or decreasing its expenses through using this new capital in order to deliver a positive return for its equity investors who hold the stock certificates.
4 0
3 years ago
According to the​ Break-Even EBIT​ analysis, shareholders are​ ____ off with debt when EBIT is​ _____ the​ Break-Even EBIT level
Kobotan [32]

Answer:

Answer B.

Explanation:

EBIT break even point is a situation when company does not make a profit or has loss. It is a point where earnings per share are equal to zero. It is the level of ebit equal to fixed costs for the company, like interest on the debt. If this break even point increases, this leads to the increase of financial risk. However, increase of ebit above break even point leads to net income calculated as EBIT*(1-interest expense)*(1-tax rate)-preferred dividends being higher.

3 0
3 years ago
Ed, a businessperson, is a friend of Fran, the owner of a Percolated Coffee & Baked Goods store. Every day, Ed spends five m
ch4aika [34]

Answer:

An contract is an understanding agreement that can be implemented in court it is a shaped by two or more gatherings who consent to perform or to cease from playing out some demonstration now or later on . The target hypothesis of agreements not by the individual or subjective aim or conviction of a gathering .The hypothesis is that gathering's expectation to go into an agreement is judged by outward destinations truths as deciphered by a sensible individual ,as opposed to by the gathering's mystery subjective aims . the essential components of a substantial contract and the path in which an agreement is made. The agreements that fall under this circumstance would be the agreement of arrangement contract of development ,contract of execution and the agreement of enforceability. The main contract would be the agreement of arrangement .They are contracts that are grouped in light of how when an agreement of development .

In the event that Ed had constantly paid for all the earlier pieces of candy, there gives off an impression of being suggested in actuality contract taking into account the earlier course of dealings amongst Ed and Fran.

Waving the sweet treat at Fran can be seen as an affirmation that Ed was not surreptitiously taking the piece of candy, but rather was demonstrating that he would get her the cash for that one later. His questionable signal in light of the gatherings earlier course of managing could sensibly be translated by Fran as a nonverbal IOU at the cost of that 1 piece of candy.There can likewise be an inferred in law contract taking into account the same certainties since to not force a suggested in law guarantee to pay results in the uncalled for improvement of Ed at the expense of Fran.Either sort of inferred contract is enforceable in Court.

8 0
3 years ago
A leading beverage company sells its signature soft drink brand in vending machines for $0.87 per 12 oz. can. A vending machine
ycow [4]

Answer:

655

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Suppose you own a restaurant were does the revenue come from
son4ous [18]
Revenue per hour of labor
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