Answer:
Differential income from the special order= $127,000
Explanation:
A company should accept a special order where the order generates additional contribution. i.e where the special order sales exceeds all relevant cost.
The relevant cost for decision to accept the special order are
I Incremental Revenue from the special order
2. incremental variable cost
Contribution per unit = 18-13=5
Total contribution from special order = contribution per unit × units
= 5× 25,400=$127,000
Differential income from the special order= $127,000
Note that whether or not the special order is accepted the fixed manufacturing and fixed operating expenses of would be incurred either way. Therefore , they are not relevant for the decision
Answer: b. . If someone deliberately understates costs and thereby causes reported profits to increase, this can cause the stock price to rise above its intrinsic value. The stock will probably fall in the future. Both those who participated in the fraud and the firm itself can be prosecuted.
Explanation:
Ethics in business ad organization is very vital towards the accomplishment of goals in every organization. Ethical behavior can be influenced by training and auditing procedures.
It should be noted that when someone understates the cost intentionally maybe with the person trying to steal from the company. This can lead to the reported profits of the company to increase, and thereby cause the stock price to rise above its intrinsic value.
If eventually the stock will fall in the future, everyone who took part in this fraudulent activity and even the company itself can be prosecuted. Performing in fraudulent activities by a company or its workers will make the individuals or the company lose the trust of its clients.
Option B is the correct answer.
Salutations!
To balance columns, a _____ is inserted at the end of the text on a page.
To balance columns, a continuous section break is inserted at the end of the text on a page.
Hope I helped!
