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
Alenkinab [10]
2 years ago
9

The following information relates to the Magna Company for the upcoming year, based on 402,000 units. Amount Per Unit Sales $ 8,

844,000 $ 22.00 Cost of goods sold 5,628,000 14.00 Gross margin 3,216,000 8.00 Operating expenses 422,100 1.05 Operating profits $ 2,793,900 $ 6.95 The cost of goods sold includes $1,320,000 of fixed manufacturing overhead; the operating expenses include $112,000 of fixed marketing expenses. A special order offering to buy 62,000 units for $13.80 per unit has been made to Magna. Fortunately, there will be no additional operating expenses associated with the order and Magna has sufficient capacity to handle the order. How much will operating profits be increased if Magna accepts the special order
Business
1 answer:
cestrela7 [59]2 years ago
6 0

Answer:

$143,356

Explanation:

The computation of the increased in the operating income if the special order is accepted is

Sales    (62,000 units × $13.80)      $855,600

Less: cost of goods sold -$664,418

($5,628,000 - $1,320,000) ÷ 402,000 units × 62,000 units

Less: Operating expenses -$47,826

($422,100 - $112,000) ÷ 402,000 units × 62,000 units

Operating income               $143,356

We simply deduct the operating expenses and the cost of goods sold from the sales revenue so that the increase in operating income could come

You might be interested in
In order to determine net cash provided by operating activities, a company must convert net income from an accrual basis to a ca
alexandr402 [8]
Both the direct method and the indirect method. Cash from operating activities usually introduces to the net cash arrival reported in the first section of the explanation of cash flows. Cash flow from operating activities also includes changes in working capital, such as increases or decreases in inventory, short-term debt, accounts receivable and accounts payable.
6 0
3 years ago
Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale debt securities. The year-en
Rzqust [24]

Answer:

Dr Available for sale securities 11,500

    Cr Unrealized gains - AFS securities 11,500

Explanation:

The securities cost is $420,000 while the fair market value is $431,500, so the difference is an unrealized gain of = $431,500 - $420,000 = $11,500.

Unrealized gains are included in Other comprehensive income account, which belongs under stockholder equity. When unrealized gains increase, then they should be credited.

Since the securities are held as investment assets, they should also increase by debiting the account.

7 0
3 years ago
Why is 4pex learning so hard
adoni [48]

because the person who made it likes to make people mad/sad

3 0
2 years ago
Although the overall divorce rate has declined in the past two decades, divorce among _________ couples is rising. elderly middl
Svetach [21]
<span>middle-aged. Some contributing factors to this are: a) after children grow up, some couples no longer have a common goal. b) infidelity, typically involving a younger person that brings excitement. c) people are living longer, so some people want to get out now rather then spend the additional years in misery.</span>
7 0
3 years ago
The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit $2.50
lara31 [8.8K]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the total unitary variable cost:</u>

Total unitary variable cost=2.5 + 1.5 + 0.25 + 1.5

Total unitary variable cost= $5.75

<u>Now, the variable costing income statement:</u>

Sales= 33,000*12= 396,000

Total variable cost= (33,000*5.75)= (189,750)

Total contribution margin= 206,250

Fixed Manufacturing Expenses= (117,000)

Fixed Selling and Administration Expenses= (21,000)

Net operating income= 68,250

4 0
3 years ago
Other questions:
  • What fee may be collected prior to delivering required disclosures?
    9·1 answer
  • Mama's Pizza Shoppe borrowed $7,200 at 12% interest on May 1, 2021, with principal and interest due on October 31, 2022. The com
    12·1 answer
  • Shen is interning to become a nurse. Mila is a very skilled and helpful nurse, but also very busy. Shen was glad to have the cha
    9·1 answer
  • A change in which of the following will NOT shift the demand curve for hamburgers? the price of hot dogs the price of hamburgers
    11·1 answer
  • Nicolette Garrison works part-time at an independent record store. Whenever her friend, Jacob Barker, comes into the store durin
    7·1 answer
  • For each of the following, determine the amount of net income or net loss for the year. a. Revenues for the year totaled $71,300
    12·1 answer
  • Three large firms dominate the telecommunication industry of United Canava: AD Telecom Inc., Mystic Telecom Corp., and Total Tal
    9·1 answer
  • Ana is trying to finish an account analysis for a client, but she's missing data. She e-mails Claire in database administration
    10·1 answer
  • You are thinking about buying a house. You find one you like that costs $400,000. You learn that your bank will give you a mortg
    14·1 answer
  • Hewlett-Packard founders David Packard and William Hewlett strived to create a close-knit organizational culture that gave a lot
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!