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Hitman42 [59]
3 years ago
7

Prince Paper has budgeted the following amounts for its next fiscal​ year: Total fixed expenses $ 900 comma 000 Selling price pe

r unit $ 85 Variable expenses per unit $ 35 If Price Paper spends an additional $ 12 comma 100 on​ advertising, sales volume should increase by 3 comma 000 units. What effect will this have on operating​ income?
Business
1 answer:
stepan [7]3 years ago
8 0

Answer:

The effect on net operating income would be an increase of $137,900

Explanation:

Giving the following information:

Selling price $85

Variable expenses per unit $ 35

If Price Paper spends an additional $12,100 on​ advertising, sales volume should increase by 3,000 units.

To calculate the effect on income, we need to determine the incremental total contribution, and deduct the incremental fixed costs:

Effect on income= 3,000*(85 - 35) - 12,100= $137,900

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Title to a certain real property is being held in a trust as collateral for a loan. What kind of deed will the trustee use to co
Shkiper50 [21]

Answer: Reconveyance deed

Explanation: A Reconveyance deed is used to indicate that a borrower has paid his loan or debt in full. A Reconveyance deed is issued by the trustee or lender to signal the transfer of title to the original owner after he or she must have satisfied the term of loan issued by the trustee. A Reconveyance deed is usually notarized containing a legal description of the property and its parcel number.

4 0
2 years ago
240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 4
elena-14-01-66 [18.8K]

Question Completion:

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April.

Answer:

1. The number of units transferred to the Finished Goods Inventory is 218,000.

2. Number of equivalent units with respect to materials and conversion:

Materials = 305,600

Conversion = 264,600

Explanation:

a) Data and Calculations:

                                              Materials     Conversion

Beginning inventory                  60%             40%

Units completed before          36,000           24,000

Units completed now              24,000           36,000

Equivalent units of production:

Started and completed         240,000        240,000

Ending inventory (82,000 units) 80%           30%

=                                               65,600          24,600

Total equivalent unit            305,600        264,600

The number of units transferred to finished:

Beginning inventory units         60,000

Units started and completed  240,000

Total units available                300,000

less Ending inventory units      82,000

Units transferred out              218,000

b) Using the weighted-average method, the equivalent units of production are equal to the units started and completed plus the units of ending inventory based on the degree of completion.

6 0
3 years ago
Assume that Cane expects to produce and sell 88,000 Alphas during the current year. One of Cane's sales representatives has foun
Reptile [31]

Answer:

Advantage = $360,000

Explanation:

Since fixed costs cannot be changed, it is unavoidable or irrelevant.

We have to deduct the avoidable expenses from the revenue to find whether Cane accepts the order or not.

Revenue ($112 x 18,000 units) =                                           $2,016,000

Less: Relevant Costs (Product costs)

Direct Material      $30 x 18,000 =                            $540,000

Direct Labor          $22 x 18,000 =                            $396,000

Variable Manufacturing Overhead   $20*18,000 = $360,000

Variable Selling expenses            <u>    $20*18,000 = $360,000</u>

Total Relevant costs                                                    <u>        $(1,656,000)</u>

Financial advantage of accepting the new order            $ 360,000

Therefore, the company should accept the new order.

7 0
3 years ago
What is a specialty good?
Anuta_ua [19.1K]

Answer:

 The specialty goods are one of the type of consumer products an it basically categorized under the category of shopping and the convenience goods.

The specialty products are basically purchased by the consumers or users because of its unique characteristics and high efficient brands. Exotic perfumes, designer clothe and famous printing cloths are some examples of the specialty products.

The main objective of the specialty goods is that the customers group are wiling for purchasing the specific products due to its unique features or high brand and also make special efforts for purchasing the specific products and the services.

5 0
2 years ago
Helmers Corporation manufactures a single product. Variable costing net operating income last year was $103,000 and this year wa
Romashka [77]

Answer:

$64,600

Explanation:

Given that

Variable costing net operating income last year = $1,03,000

Fixed manufacturing overhead costs = $38,400

The computation of net operating income is as shown below:-

= Variable cost - Overhead cost

= $1,03,000 - $38,400

= $64,600

So, from the above calculation we simply deduct Variable cost from Overhead cost.

3 0
2 years ago
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