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slamgirl [31]
3 years ago
5

Minnesota Company has no beginning and ending inventories, and has the following data about its only product: Fixed manufacturin

g costs $92,000 Fixed selling and administrative costs $69,000 Variable manufacturing costs $1,030,000 Variable selling and administrative costs $120,000 Selling price(per unit) $125 Units produced and sold 23,000 Assume there is excess capacity. The company has received a special order for 1,000 units at $60.00 per unit. If the special order is accepted, what will be the effect on net income
Business
1 answer:
Schach [20]3 years ago
7 0

Answer:

Effect on income= $10,000 increase

Explanation:

Giving the following information:

Variable manufacturing costs $1,030,000

Variable selling and administrative costs $120,000

The company has received a special order for 1,000 units at $60.00 per unit.

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

First, we need to calculate the unitary variable cost:

Unitary variable manufacturing cost=  1,030,000/23,000= $44.78

Unitary variable selling and administrative cost= 120,000/23,000= $5.22

Total unitary variable cost= 44.78 + 5.22= $50

Now, we can determine the effect on income:

Effect on income= 1,000*(60 - 50)= $10,000 increase

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On January 1, Boston Enterprises issues bonds that have a $2,100,000 par value, mature in 20 years, and pay 7% interest semiannu
yulyashka [42]

Answer:

$73,500

Explanation:

Calculation to determine How much interest will Boston pay (in cash) to the bondholders every six months

Semiannual cash interest

payment =$2,100,000 × 7% × 1/2

Semiannual cash interest

payment = $73,500

Therefore How much interest will Boston pay (in cash) to the bondholders every six months is $73,500

7 0
2 years ago
ampara Corporation manufactures two styles of lamps long dash Bedford Lamp and Lowell Lamp. The following per unit data are​ ava
zhenek [66]

Answer:

The $ 4 per machine hour is the contribution margin per machine hour for the Lowell​ Lamp.

Explanation:

Since in the question two lamps : Bed-ford lamp and Lowell lamp information is given .

Based on the information mentioned in the question, First we have to calculate the contribution margin per unit. Than we are able to calculate contribution margin per hour.

The computation for Lowell Lamp is given below

The contribution margin per unit = Sales per unit - variable cost per unit

                                                      = $38 - $22

                                                      = $16 per unit

Since, contribution margin per unit is  $16 per unit. So, now we calculate contribution margin per machine hour  which is equals to

Contribution margin ÷ machine hours for Lowell lamp

$16 per unit ÷ 4

= $ 4 per machine hour

Thus, the $ 4 per machine hour is the contribution margin per machine hour for the Lowell​ Lamp.

8 0
3 years ago
What is the name given to the development of a new good?
Rama09 [41]

An invention is the name given to the development of a new good.

<h3>What an invention?</h3>

Invention refers to the process of creating something that has never been made. It  is a unique or novel device, method, composition or process.

An invention uses technology to solve a specific problem hence the name given to the development of a new good.

Examples of invention includes:

  • Manufacturing of Telephone.
  • Manufacturing of printing press.

Therefore, the name given to the development of a new good is called invention.

Learn more about invention here : brainly.com/question/23538626

4 0
2 years ago
The Hill Company reported the following results:
krok68 [10]

Find the attachments for complete answer

8 0
3 years ago
Trans Union Corporation issued 6,800 shares for $50 per share in the current year, and it issued 11,800 shares for $37 per share
oee [108]

Answer and Explanation:

The impact of the transactions on the financial statement are as follows

1. In case of Sold 5,000 Shares:

The total Assets Increased by $250,000 i.e (5,000 × $25) as it increased the cash balance

Total Liabilities = No Change

Total Stockholders Equity = Increased by $250,000 as it increased the overall equity

Net Income = No Change.

2. In case of sale of 10,000 shares

The total Assets Increased by $370,000 i.e (10,000 × $37) as it increased the cash balance

Total Liabilities = No Change

Total Stockholders Equity = Increased by $370,000 as it increased the overall equity

Net Income = No Change.

3. In case of  Purchased 20,000 of Treasury Stock

The Total Assets Decreased by $900,000 i.e (20,000 × $45) as it reduced the cash balance

Total Liabilities = No Change

Total Stockholders Equity Decreased by $900,000 as it decreased the overall equity

Net Income = No Change.

Note:

The number of shares given i.e 6,800, 11,800 and 21,800 are incorrect use the 5,000 shares, 10,000 shares and 20,000 shares and we did the computation accordingly

7 0
3 years ago
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