Answer:
The effect that will happen on the net income is an increase in $6,000.
Explanation:
For this product, we have:
Price: $90.
Variable cost: $28
Allocated fixed cost: $18
There is an opportunity to sell 3,000 units at $30, and the firm has excess capacity.
As the allocated fixed cost only counts for the existing level of production (before accepting the 3,000 additional units), they don't matter in the decision.
With excess capacity, the firm only incurs in the variable cost of $28 per unit. If the price is $30, the variation in the net income will be:
![\Delta NI=Q(P'-VC)=3,000*(30-28)=3,000*2=6,000](https://tex.z-dn.net/?f=%5CDelta%20NI%3DQ%28P%27-VC%29%3D3%2C000%2A%2830-28%29%3D3%2C000%2A2%3D6%2C000)
The effect that will happen on the net income is an increase in $6,000.
4. As it is not the finance departments job to keep up with reputation and how they look.
Answer: mary will pay $0 and her employer will pay $7.20
Explanation:
Federal unemployment rate = 0.6%
Gross income as of 31/12/19 = $5800
Maximum amount = $7,000
Mary's gross earning
as at 15/12/19 = $3,000
Employer's pay = rate × ( $7,000 - $5,800)
0.6% × $1,200
0.006 × $1,200 = $7.20