Answer:
a. Accept the order
b. Increase in short-term profit of $50,000
Explanation:
<em>Note : Blowing Sand has "enough excess capacity" this means that fixed cost will be the same in the range or they will be ocurred whether or not the special order is accepted.</em>
Therefore fixed costs are Irrelevant for this decision.
<u>Incremental Costs and Revenues - accept the special order</u>
Sales ( 10,000 units × $22 each) $220,000
<em>Less</em> Variable Costs ( 10,000 units × $17each) ($170,000)
Net Income $50,000
The special order will result in an increase in short term profit of $50,000. Therefore, Blowing Sand Company should accept the order.
Going With Your First mind Because It's Not In The Thinking Process
There are 3 systems as far as considering the percentage, they are progressive, regressive and proportional, progressive is good as the rate of tax increases proportionally as the income increases...taxes can be used for long term development projects which will eventually be fruitful for the economy.
Answer:Revenue Test, profit or loss test and asset test are tests to determine which operating segments require separate disclosure.
Explanation:Revenue Tests is the rough determination of the price elasticity of demand for a company's product, this is done by evaluating changes in income that may arise from price change.
Profit or loss test determines if the business is profitable or not.
An asset test is the company's ability to meet it's short term legal responsibilities.
It is based around performance of an entity, so your answer would be A.
