1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
masya89 [10]
3 years ago
8

Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sell

s 75,000 units at $7.00 each. This level represents 80% of its capacity. Production costs for these units are $3.50 per unit, which includes $2.25 variable cost and $1.25 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:
A. $45,000 increase.

B. $11,250 increase.

C. $33,750 increase.

D. $7,500 decrease.

E. $33,750 decrease
Business
1 answer:
UkoKoshka [18]3 years ago
8 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Special one-time order for 15,000 bird feeders at $3 per unit.

Variable cost= $2.25

<u>Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.</u>

Effect on income= 15,000*(3 - 2.25)= $11,250 increase.

You might be interested in
Johns Company manufactures products R, S, and T from a joint process. The following information is available: Product R S T Tota
Kryger [21]

Answer:

C) $ 80,000 $ 70,000

Explanation:

R = ($48,000/$120,000) x $200,000

=0.4×$200,000

= $80,000

S = $200,000-$50,000-$80,000

= $70,000

Therefore the sales value at split-off for products R is $80,000 and S $70,000

6 0
3 years ago
Drew is in charge of writing a report for his company that talks about the quality and safety of his company's products, busines
ira [324]

Answer: Compliance review

Explanation: A compliance review can be defined as an audit done with the objective to assess whether the company is following the regulatory guidelines. In such a review the auditor tries to determine if the items that being examined complies with the set standards.

In the given case, Drew is  writing the report to spread the information that they are following all the guidelines related to safety and quality.

Thus, from the above we can conclude that the correct option is C.

7 0
3 years ago
Vaseline, the world's most famous—and priciest—brand of petroleum jelly, wants to improve its financial performance (i.e. revenu
ohaa [14]

Answer:

Please consider the following explanation

Explanation:

Vaseline can improve its financial performance by doing some product differentiation, as the rest 15% are also selling petroleum jelly but at much lower costs than Vaseline, and to convince its customers to spend extra bucks to buy Vaseline, it needs to provide something extra.

Vaseline can incorporate extra ingredients like aloevera, or turmeric, etc, i.e. the beauty or health fashions prevalent in the market this information can be obtained by a thorough research of the beauty blogs available online.

Once the product has something extra, Vaseline can go ahead and market its product better based on the benefits of the product differentiation, and hence steam away market from the remaining 15% and increase its financial performance.

6 0
3 years ago
The cost constraint suggests that, even when the cost of providing accounting information exceeds its benefit, the financial acc
Alekssandra [29.7K]

Answer:

False

Explanation:

The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.

For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.

Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.

3 0
3 years ago
Perez Company acquires an ore mine at a cost of $2,940,000. It incurs additional costs of $823,200 to access the mine, which is
cluponka [151]

Answer:

$1,500,000

Explanation:

Step 1 : Determine depletion rate

Depletion rate = $3.57

Step 2 : Depletion expense

7 0
3 years ago
Other questions:
  • Tonneau Corporation had the following information available for October 2018: Work in Process, October 1 $20,000 Materials place
    7·1 answer
  • The following income statement was drawn from the records of Joel Company, a merchandising firm: JOEL COMPANY Income Statement F
    5·1 answer
  • A layer of security that credit card companies are starting to do?
    11·1 answer
  • Tell me all the important stuff i need to know about scarcity in terms of Economics?
    6·2 answers
  • Prairie Partnership has four equal partners, Dodd, Crank, Pick, and Mack. Each of the partners had a tax basis of $320,000 as of
    9·1 answer
  • In order to avoid shortsightedness, today marketers are moving toward viewing communications as managing the ________.
    6·1 answer
  • GL Inc., a firm facing the threat of bankruptcy, did not want to be acquired by Red Phoenix Inc. because it would make drastic c
    14·1 answer
  • Accompanying a bank statement for Marsh Land Properties is a credit memo for payment on a $15,000 one-year note receivable and $
    15·1 answer
  • Statz Company had sales of $1,800,000 and related cost of goods sold of $1,050,000 for its first year of operations ending Decem
    5·1 answer
  • The plaintiff and the defendant entered into a three-year contract in which the defendant would be the sole supplier of steel pa
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!