1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vladimir [108]
3 years ago
14

It costs Fortune Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A for

eign wholesaler offers to purchase 1,000 scales at $15 each. Fortune would incur special shipping costs of $1 per scale if the order were accepted. Fortune has sufficient unused capacity to produce the 1,000 scales.
If the special order is accepted, what will be the effect on net income?

a)$2,000 increaseb)$2,000 decreasec)$3,000 decreased)$15,000 increase
Business
2 answers:
lianna [129]3 years ago
7 0

Answer:

c)$3,000 decrease

Explanation:

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

Considering the data given with respect to the special order, the net income would be equal to the sales less the additional cost which are variable and fixed.

net profit/(loss) from order

= 1000 ($15 - $5 - $12 - $1)

= ($3000)

marta [7]3 years ago
4 0

Answer:

a)$2,000 increase

Explanation:

As fixed cost is the irrelevant expense in the decision making for the special order. It is avoidable cost.

Special Order

Quantity 1000 scales

Price                            $15 per sale

Less: Variable cost     $12 per sale

Less: Shipping cost    $1 per sale

Contribution margin   $2 per scale

Total Contribution margin = 1,000 scales x $2 per scale = $2,000

Net Income will increase by $2,000 if the special order is accepted.

You might be interested in
The market price of cheeseburgers in a college town increased recently, and the students in an economics class are debating the
Artemon [7]

Answer: B) If the equilibrium quantity of cheeseburgers increases, then the demand shift in the market for cheeseburgers must have been larger than the supply shift.

Explanation:

1. An increase in the price of cheeseburgers is due to the fact that several burger joints in the area have recently gone out of business. This will shift the supply curve for cheeseburgers to the left, driving up the price of cheeseburgers and reducing the quantity.

2. An increase in the price of Calzones at local pizza parlors lead to an increase in the demand for Cheese burgers as cheese burgers and calzones are substitutes to each other. So, when price of calzones rise, consumers shift demand to cheeseburgers. This will lead to a rightward shift in the demand for cheese burgers as a result the price and quantity of cheese burgers increase.

3. A decrease in supply due to burger joints going out of business shift the supply curve to the left. Increase in the price of calzones increase demand for burgers shifts the demand curve to the right. Both these will increase the price of cheeseburgers but the effect on quantity cannot be determine as depends on the magnitude of the shift in the two curves.

If demand shifts more than supply, equilibrium quantity increases. If supply shifts more than demand, equilibrium quantity decreases.

Thus, B is correct.

3 0
3 years ago
Weisbro and Sons common stock sells for $24 a share and pays an annual dividend that increases by 4.9 percent annually. The mark
pogonyaev

Answer:

The amount of the last dividend paid by this company was $1.30/share.

Explanation:

Hi, in order to find the last dividend paid by the company, we need to use the following equation.

Do=\frac{Price(r-g)}{(1+g)}

Where:

Do = Last dividend paid

r = Market rate of return

g = annual growth rate

So, everything should look like this.

Do=\frac{24(0.106-0.049)}{(1+0.049)} =1.304099

Therefore, the last dividend paid by the company was $1.30/Share.

Best of luck

3 0
3 years ago
A co-worker has filed a document where you can access it if needed. This allows you to:
marin [14]

The filing of a document by a co-worker allows one to copy the document in case of an emergency, so both the person and the supervisor will be able to access it.

<h3>What is a document?</h3>

A piece of paper containing a material information, whether legally registered or not, is known as a document. However, as the times have evolved, a document can also be in an electronic form, other than paper.

Hence, option A holds true regarding the document of the co-worker.

Learn more about a document here:

brainly.com/question/27396650

#SPJ1

7 0
2 years ago
As a financial analyst, you are tasked with evaluating a capital-budgeting project. You were instructed to use the IRR method, a
Vilka [71]

Answer: 9.25%

Explanation:

The Capital Asset Pricing Model (CAPM) can be used to find the expected return of a project which is another term for the hurdle rate. This can then be used in the IRR method.

Formula is;

Hurdle Rate = Risk free rate + Beta( Market rate of return - risk free rate)

Hurdle Rate = 4% + 0.75( 11% - 4%)

Hurdle Rate = 4% + 5.25%

Hurdle Rate = 9.25%

7 0
3 years ago
identify a correct statement according to those who believe that regulation of discrimination and other areas of employment rela
Firdavs [7]

An accurate statement according to individuals who trust that regulation of discrimination and other areas of the employment relationship is vital: financial forces do not have the funds for absolute safety against employment discrimination on the basis of race, gender, nationality, or different covered categories.

Employment is described as what you do as a paying job. An instance of employment is running for an espresso save. The definition of employment is the quantity or percent of humans who've jobs. An instance of employment is the share of citizens with paying jobs indexed kingdom by means of the country.

A career by way of which someone earns a dwelling; paintings; enterprise. the full quantity of people gainfully hired or running. an activity or the like that occupies someone's time: She located knitting a comforting employment for her idle hours. Paints and employment may be used indistinctly in normal language, however, for the labor marketplace, they imply very different things. Employment is a totally particular form of work. other styles of work consist of personal-use production work, volunteer paintings, and unpaid trainee paintings.

Learn more about employment here:

brainly.com/question/1991900

#SPJ4

7 0
2 years ago
Other questions:
  • _____, a business-focused publisher of newspapers such as the wall street journal and barron’s, was one of the first publishers
    7·1 answer
  • Wood Dreams makes hand crafted furniture in its retail stores. The furniture maker has recently installed a new assembly process
    14·1 answer
  • On September 1, 2018, Great Lakes Equipment receives $24,000 from a customer for work to be performed evenly over the next 2 yea
    11·1 answer
  • What are the two major problems that affirmative action programs have faced?
    15·1 answer
  • It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $4.00 a piece. Homer pays a sales commission
    13·1 answer
  • The top managers of Highbrow Bookstores want to indicate to the firm's shareholders how effectively they have managed the compan
    13·1 answer
  • Interest rates on 4-year Treasury securities are currently 6.9%, while 6-year Treasury securities yield 7.15%. If the pure expec
    5·1 answer
  • Infinity Corporation purchased equipment with a 10-year useful life and zero residual value for $10,000. At the end of the fifth
    6·1 answer
  • A rule that every imported product must be opened by hand and inspected with a magnifying glass, by one of just three government
    10·1 answer
  • An organization of investors usually in the form of a limited partnership who have joined together for the purpose of pooling ca
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!