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Morgarella [4.7K]
3 years ago
10

It costs HHI Company $7 of variable costs and $3 of fixed costs to produce its product at full capacity. However, the company cu

rrently has unused capacity. The product sells for $15. Burlington Company offers to purchase 3,000 units at $9 each. HHI will incur special shipping costs of $2.50 per unit. If the special offer is accepted and produced with unused capacity, net income will:
Business
1 answer:
uranmaximum [27]3 years ago
3 0

Answer:

The company's income will decrease in $1,500

Explanation:

Giving the following information:

Burlington Company offers to purchase 3,000 units at $9 each. HHI will incur special shipping costs of $2.50 per unit. HHI Company $7 of variable costs.

The company has unused capacity, so we will not have into account the fixed costs.

Total variable cost= 7 + 2.5= 9.5

Selling price= 9

Marginal contribution= -0.5

Effect in income= -0.5*3000= $-1,500

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Goodell Corporation just paid its annual dividend of $1.75, today. Dividends for the Goodell Corporation are expected to increas
AlekseyPX

Answer:

current price of Goodell Corporation stock is $48.26

Explanation:

given data

annual dividend = $1.75

expected to increase 1 year = 27.5 percent

expected to increase 2 year = 13.8 percent

expected to increase per year = 5 percent

required rate of return = 10 percent

solution

we get here first dividend that is

D1 = 1.75 × (1.275) = 2.23    ...............1

D2 = 2.23 × (1.138) = 2.54    ...............2

D3 = 2.54 × (1.05) = 2.67      ...............3

and

year 2 price will be

P2 = D3 ÷ (R – g)    ...............4

P2 = 2.67 ÷ (0.10 - 0.05)

P2 = 53.4     ...............5

so current price will be

P = 2.23 ÷ (1.10) + 2.54 ÷ (1.10)2 + 53.40 ÷ (1.10)2

P = $48.26

4 0
3 years ago
Consider the market for cars. Which determinant of supply is affected by each of the following events? a. A steel tariff increas
Kitty [74]

Answer & Explanation:

1.  A steel tariff increases the price of steel :  Increase in of 'Price of inputs' -  decreases (leftward shifts) supply curve

2. Improvement in robotics increase efficiency & reduces costs : Upgradation of 'technology'-  increases (rightward shifts) supply curve

3. Factories close because of am economic downturn : 'Number of sellers' reduce - decreases (leftward shifts) supply curve.

4. The price of trucks falls, so factories produce more cars : Decrease in 'price of related goods' - increases (rightward shifts) supply curve.

5. The government announces a plan to offer tax rebates for the purchase of commuter rail tickets : 'Expectations' regarding rise in relative price of cars - decreases (leftward shifts) supply curve.

6. The government announces that it will dramatically rewrite efficiency standards, making it much harder for automakers to produce their cars : 'Goverment policy' stringency  - decreases (leftwards shifts) supply curve.

4 0
3 years ago
Choosing a computer that costs_____ instead of one that cost ____
Oliga [24]
The correct answer is C, no doubt
6 0
3 years ago
Read 2 more answers
The Office of Management and Budget and the Council of Economic Advisers are both parts of the ________.
7nadin3 [17]

Answer:

The correct answer is "Executive office of the president"

Explanation:

The Executive Office of the President of the United States (EOP) is a gathering of agencies belonging to the executive branch of the government of the United States of America. The principal function is to support the president works.

The Office of Management and Budget and the Council of Economic Advisers are part of the EOP.

5 0
3 years ago
In converting net income to net cash provided (used) by operating activities, under the indirect method:
Monica [59]
My guess would be B , Hope I helped :)
6 0
3 years ago
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