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grigory [225]
3 years ago
12

It costs Sheridan Company $28 of variable costs and $17 of allocated fixed costs to produce an industrial trash can that sells f

or $84. A buyer in Mexico offers to purchase 3000 units at $34 each. Sheridan Company has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? Increase $102000 Increase $33000 Increase $18000 Decrease $33000
Business
1 answer:
Mashutka [201]3 years ago
6 0

Answer:

Option (C) is correct.

Explanation:

Variable costs = $28

Allocated fixed costs = $17

Selling price = $84

Due to acceptance of M offer, S would be got excess contribution margin per unit. Because acceptance selling price ($34) is greater than the variable cost per unit ($28).

We don't have any information about the fixed cost due to acceptance. Therefore, we assumed that fixed cost is not increased.

Increased contribution margin per unit:

= Selling price - Variable cost

= $34 - $28

= $6

For 3,000 units, Increased contribution margin = 3,000 × $6

                                                                               = $18,000

Therefore, net income is increased by $18,000 when the offer is accepted.

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According to the erosion model of organizational commitment, the employee with the fewest emotional bonds is the most likely to
Likurg_2 [28]

The statement, according to the erosion model of an organizational commitment, the employee with the fewest emotional bonds is the most likely to quit, is true.

The erosion model explains that an organization's employee who have less or fewer emotional bonds tend to quit the organization because they do not feel or get involved in the organization, or they don't feel any attachment to it.

Here the social influence model states that suppose when two employees are closely related or have good terms, so if one of them quits their work, then the other one is more likely to follow them and leave the organization.

Hence, the erosion model suggests that employees with fewer bonds will be most likely to quit the organization.

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4 0
1 year ago
Mr. Jacob, who is terminally ill, writes a will transferring all his assets to his daughter Silvia, in the event of his death. T
Anit [1.1K]

Answer:

Invalid

Explanation:

Since it is stated in the will, that upon his death should the assets be transferred, it means that Silvia doesn't get anything until Mr Jacob ceases to be alive.

With the new development as regards Mr Jacob living for 6 more months before dying, Silvia has no assets yet and as such cannot transfer anything to Jacob Jnr.

Cheers

8 0
3 years ago
How much would Software E cost <br> you in the long run?
kicyunya [14]
It would cost me a fortune tbh like software e cost is like the best thing to ever exist so you won’t regret nothin
5 0
2 years ago
A vendor has learned that, by pricing caramel apples at $1.25, sales will reach 111 caramel apples per day. Raising the price to
Wittaler [7]

Solution:

Slope = y2 - y1 / x2 -x1

slope = 81 - 111 / $2.00 - $1.25

slope = -30/$0.75

So every $0.75 increase causes a decrease of 30 sales.

So the rise over run or slope of the line is -30/0.75 = -40/1

Start forming the equation:

y = mx + b

y = -40x + b

Substitute one of the points to find the y-intercept:

81 = -40(2) + b

Isolate for the y-intercept:

b = 161

So,

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7 0
3 years ago
In the long run, assuming that market demand stays the same, if firms in a competitive industry expand, then the product price w
navik [9.2K]

Answer:

True

Explanation:

In Microeconomics, there is a correlation between offer and demand. If the market demand stays the same, in a competitive industry expanding its demand other suppliers will come into the game.

So, in the long run. Prices will end up to fall as a result, until it stabilizes on average.

3 0
3 years ago
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