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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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the price of fertilizer has increased. how will this affect soybean production? a change in input prices b change in technology
aksik [14]

Increased prices of fertilizers would bring a change in the price of a related (substitute) good.

The use of too much fertilizers in the crop increases the crop yields but decreases it's quality and thus the crops are available at a cheaper rate. On the contrary, when the fertilizers has increased, there would be lesser application of fertilizers with a good crop yield but an increased price of the related good too.

It is not profitable to utilise a pound of fertiliser when the price is higher than the anticipated increase in revenue from applying it to the field. Producers will be encouraged to use less fertiliser per acre because fertiliser prices have risen more than most crop prices.

To know more about fertilizers, refer to the following link:

brainly.com/question/27428418

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4 0
1 year ago
Which of the following statements regarding a balanced scorecard is correct? Multiple Choice A balanced scorecard includes non-f
Fynjy0 [20]

Answer:  All of these are correct answers.

Explanation: In simple words, Balanced scorecard refers to the strategic management system in which the organisational tries to communicate to the stakeholders what is their ultimate goal and what are they trying to establish.

In such a process, the managers of the organisation translate their mission statement relating to various aspects of customer service and declares their course of actions regarding the activities that really matters to the customers.

Hence from the above we can conclude that all the statements are correct in the given case.

4 0
4 years ago
On September 1, 2021, Southwest Airlines borrows $39.6 million, of which $7.2 million is due next year. Show how Southwest Airli
Flauer [41]

Answer:

$10,440,000

Explanation:

The computation of Total liabilities is shown below:-

Balance Sheet

Current liability

Current portion of long term debt     $7,200,000

Long term liability

Notes payable                                     $3,240,000

Total Liabilities                                   $10,440,000

Working Note

Notes Payable =  $39.6 million - $7.2 million

= $32.4 million

4 0
3 years ago
XYZ Company operates on a remote interstate highway. It provides premium services to truckers en route to remote locations. It h
Ganezh [65]

Answer:

c. value proposition based on differentiation and a niche clientele that is willing to pay for added value.

Explanation:

Since in the question it is mentioned that XYZ company provides the premium service also they have various number of competitors that offered the customer at less prices but at the same time this company meet the customer demand having the high quality service so here the value should be proportioned that depend upon on the differentiation also it would be pay for adding the value

Hence, the option c is correct

3 0
3 years ago
In an open economy the GDP is $12 trillion this year. Consumption is $8 trillion, and government spending is $2 trillion. Taxes
DedPeter [7]

Answer:

B)a deficit of $1.5 trillion

Explanation:

The computation of the government budget balance is shown below:

= Taxes - government spending

= $0.5 trillion - $2 trillion

= $1.5 trillion deficit

For computing the government budget balance, we deduct the government spending from the taxes so that the correct amount can come

All other information which is given is not relevant. Hence, ignored it

6 0
3 years ago
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