Answer:
The increase in pre-tax income 20,000
Explanation:
The fixed cost of production would remain the same whether or not the special order is taken, hence, irrelevant for the decision at hand.
The sale price for the special order=10
the variable cost per unit=6
contribution margin per unit from special order=10-6=4
The increase in pre-tax income=total contribution margin from special order
The increase in pre-tax income=5000*4
The increase in pre-tax income=20,000
Hence, accepting the order is worthwhile.
The answer to the blank space of the statement is project manager.
A project manager is a person whose <u>main responsibility is to manage the planning, procurement, and execution of a project from start to finish</u>. This also includes determining what milestones can be managed in-house (by people inside the company) or should be done by subcontractors or consultants.
Answer:
20.91%
Explanation:
Provided information
Average historical rate of return = 10.1 %
Variance = 0.0116751
By considering the above information, the standard deviation would be
= Square root of Variance
= 10.81%
So the upper percentage range of return would be
= Standard deviation + standard deviation
= 10.81% + 10.1%
= 20.91%
Since we have to find out the upper percentage so we added it otherwise we have to deduct it
Answer:
$11,200
Explanation:
The computation of the amount of the total amount of fixed manufacturing cost incurred is shown below:
= Number of units produced and sold × Fixed manufacturing overhead per unit
= 4,000 units × $2.80
= $11,200
By applying the Number of units produced and sold with the Fixed manufacturing overhead per unit we can find out the fixed manufacturing overhead cost
Answer:
A decrease in the size of a tax always decreases the deadweight loss of that tax.
Explanation:
Deadweight loss of tax is defined as the harm that is caused by tax to economic efficiency and prodction. It measures by how much taxes reduces the standard of living of a population.
Deadweight loss is the difference between to tax imposed and the reduction in production level it causes.
A decrease in the size of tax will give more income free to invest in production, therefore the production level will increase. This reduces the deadweight loss.
Effect of tax on deadweight is illustrated in the attached.
