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
vazorg [7]
3 years ago
13

Falcon Co. produces a single product. Its normal selling price is $29 per unit. The variable costs are $17 per unit. Fixed costs

are $19,500 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,430 units with a special price of $19 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, what would be the impact on net income? a. increase of $5,720 b. increase of $4,576 c. increase of $7,436 d. decrease of $3,432
Business
1 answer:
Nady [450]3 years ago
7 0

Answer:

a) increase of $5,720

Explanation:

The relevant cash flows for this decision are:

  1. the variable cost of production- 17- 2 = 15 per unit × 1,430 = $21,450
  2. The sales revenue from the order-  $19 × 1,430 = $27,170

The contribution from the special order would be determined as follows:

Contribution from special order = sales revenue - variable cost

= (19 - 15)× 1,430 = $5,720

Increase of = $5,720

You might be interested in
What is the role of incentives in the workplace?
Fynjy0 [20]

Answer:

a way to keep workers motivated to do their job to the best of their ability. having something to look forward to.

Explanation:

3 0
3 years ago
Read 2 more answers
An investor who owns a bond with a 9% coupon that pays interest semi-annually and matures in three years is considering its sale
tino4ka555 [31]

Answer:

0

Explanation:

7 0
4 years ago
Citrus Inc., a leading Internet service provider, provides its top managers with a bonus every year. However, this year the comp
barxatty [35]

Answer:

Extinction

Explanation:

Contingency of extinction occurs when previously reinforced behaviours are removed or changed as a result of changes in the environment. In this scenario, the behaviours that was changed in the current year was the payments of bonuses to top managers. The changes in the environment was the poor performance and average stock price dropping. It resulted in the top managers not receiving their annual bonuses this time.

4 0
4 years ago
Read 2 more answers
A corporation has a $500,000 beginning balance in retained earnings. its net income for the year was $200,000. sales revenue amo
natta225 [31]
Given:
<span>$500,000 beg. balance in retained earnings.
</span>$200,000 <span>net income for the year
</span>$1,000,000 <span>sales revenue
</span>$100,000 <span>dividends declared and paid by year-end

Retained earning is the amount left from net income after dividends have been paid. In the given data, sales revenue is not included in the Retained earnings report. It is reflected in the Income statement which generates the Net income. 

Retained Earnings, beg. balance            500,000
Add: Net Income for the year               <u>   200,000</u>
Total                                                                           700,000
Less: Dividends declared and paid this year          <u>   (100,000)</u>
Retained Earnings, end balance                             600,000

</span>
6 0
3 years ago
Turner, a billing executive, goes directly above his immediate boss, Ally, to Charlie for permission to take his lunch break 30
SSSSS [86.1K]

Answer: Option A    

 

Explanation: In simple words, Scalar principle refers to the rule under which a subordinate is obligated to report his or her actions to the immediate supervisor and not the higher management.

In the given case, Turner asked from his superior to take lunch break early which in turn resulted in the perception that it is allowed in the organisation. Therefore, turner gave authority to his subordinates and other co workers the of the department to do the same also.

Hence from the above we can conclude that the correct option is A.

5 0
3 years ago
Other questions:
  • Define the term hidden job market. then list three strategies
    9·1 answer
  • Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, an
    14·2 answers
  • In the U.S., how is the deficit different than the national debt?
    11·1 answer
  • Which factor determines who a society will produce goods and services for?
    14·2 answers
  • Equilibrium occurs when supply and demand coordinate to
    15·2 answers
  • Max Weber believed that a company that is a bureaucracy never achieves a competitive advantage because it is inefficient and is
    8·1 answer
  • What are the remains after the costs of running a business have been paidA. stockB. taxesC. profits
    10·1 answer
  • Arturo is a sales manager for the bratney companies, a company that manufactures equipment used in the processing of grains and
    12·1 answer
  • What is the customer orientation of a company, and why is it important for a
    10·1 answer
  • If a firm's marginal tax rate is increased, this would, other things held constant, lower the cost of debt used to calculate its
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!