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
Where is focus located in concave mirror?
gogolik [260]

Answer:

you are correct for this answer

4 0
2 years ago
EA16.
Artist 52 [7]

Answer:

Explanation:

The journal entry is shown below:

Work in process A/c - shaping department Dr $35,000

Work in process A/c - packaging department Dr $25,000

         To Manufacturing overhead A/c $60,000

(Being apply overhead to the manufacturing departments is recorded)

The computation is shown below:

For shaping department

= 3,500 machine hours × $10 per machine hour

= $35,000

For Packaging department

= 2,500 machine hours × $10 per machine hour

= $25,000

5 0
3 years ago
Assume Bank XYZ has 3 assets and 4 liabilities, with the following information: Assets Liabilities yield dollar value cost dolla
goldfiish [28.3K]

Answer:

The answer is "$500".

Explanation:

Calculating the total Interest Income:

= \$( 5\% \times 1000+10\% \times 4000+20\% \times  2000)\\\\= \$( \frac{5}{100} \times 1000+ \frac{10}{100} \times 4000+ \frac{20}{100} \times  2000)\\\\=\$ (50+400+400) \\\\ =\$ 850

Profits of non-interest=$1000

Earnings and losses for shares = $40

For point 1:

The formula for Total Revenue: = \text{Total Interest Income}+ \text{Non Interest Income} + \text{Realized Securities gains and losses} \\

= \$(850+1000+40) \\\\ = \$ 1890

For point 2:

The formula for total Expenditure: \text{(Interest Expense+Non interest expense+Provision for losses+Taxes)}

\text{Interest expense}= \$( 2 \% \times 1000+4\% \times 1000+6\% \times 1000)

                          = \$(  \frac{2}{100}  \times 1000+ \frac{4}{100}  \times 1000+ \frac{6}{100}  \times 1000) \\\\= \$ (20+40+60)\\\\ =\$ 120

Expenditure for non-interest=$1200

Loan and damage provisions = $50

Tax = $20

Complete Expenditures= \$(120+1200+50+20) = \$ 1390

Therefore,\text{net sales = (Total Revenue-Total Expenditure)}

                               =\$(1890-1390) \\\\ = \$ 500  

5 0
3 years ago
On january 1, 2016, wright transport sold four school busses to the elmira school district. in exchange for the buses, wright re
Daniel [21]
<span>Sales revenue on January 1, 2016 would be recorded as $515,000 becasue if the amount if paid today that is the amount that would be received. For every day that follows sales revenue would be calculated by the following equation (515,000+(.08*515,000/365)</span>
4 0
3 years ago
Mathias is doing a group presentation on stem cell research. After extensively reading up on the topic, Mathias and his group wi
alexdok [17]

Answer:

Letter A is correct. <u>A panel.</u>

Explanation:

This is an example of a panel. It occurs when it involves a group of people so that there is a presentation of a specific theme in front of an audience and there can be interaction and exchange of ideas, with the participation of experts and also open the participation of the audience.

Each group has a mediator who will be responsible for coordinating the presentation time and the most relevant issues to be discussed. Generally in a panel discussion, relevant topics in the present and community are addressed, such as political, social and ethical issues.

5 0
3 years ago
Other questions:
  • An employee who pockets cash received from a customer without recording the transaction is an example ofâ a(n):
    7·1 answer
  • Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit margin (ratio of gross profit t
    9·1 answer
  • Which of the following risk factors indicates an increased risk of misappropriation of assets?
    15·1 answer
  • Which of the following might be considered e-waste?
    12·1 answer
  • What is the concept that people may decide what and when they want to buy and sell called?
    6·2 answers
  • The desire for which item(s) would be considered a noneconomic want?
    14·1 answer
  • California has an average rainfall of 3 inches for the month of January. This year California had over 12 inches, which is equiv
    11·1 answer
  • What’s does stockbroker mean?
    6·1 answer
  • Why is the quality of standards/services of products usually low for a domestic business?
    9·1 answer
  • If making your family and friends a priority is important to you, you value
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!