Answer:
The annual capacity is 85000 units. If order is accepted of 12000 units the company will be able to sell only 73000 units (instead of 78000).
Explanation:
Current Net Income calculation and New Net Income calculation are atteched in the archive.
- Increase in income = new income – old income = 370000 – 340000 = $30000
- Marston’s Net Income will INCREASE by $30,000 if it accepts the special order.
- The above increase can be also understood as---
Contribution gain on special order – 12000 units x ($105-$90) = $180,000
(-) Contribution lost of normal sale – (78000 units – 73000 units) x ($120-$90) = $150000
Net INCREASE = 180000 – 150000 = $30,000
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Answer:
D: not enforce it.
Explanation:
Based on the information provided within the question it can be said that in this specific scenario a court would most likely not enforce this extra agreement. This is because it is not directly clear on what the payment is for. Since they are paying extra for Genovese Contracting to put extra effort and over come the obstacles, but they may not be able to do so if these obstacles are out of their control.
Answer:
C. The choice of consumers regarding what to purchase to satisfy their wants and the choice of producers regarding what to produce to maximize profits.
Explanation:
The extremely large amount of products that large hardware stores, such as Office Depot, carry, are most likely a consequence of the combination of these factors. On the one hand, the customers who go to this stores have a particular want, and their purchases are intended to satisfy these wants. On the other hand, the producers also have to make a choice, and they generally chose the products that are most likely to maximize their profits.