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creativ13 [48]
3 years ago
13

Missouri Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs

are $0.60 per unit and fixed costs are $0.50 per unit. Current monthly sales are 173,000 units. Gates Company has contacted Missouri Company about purchasing 20,000 units at $1.00 each. Current sales would not be affected by the special order and no additional fixed costs would be incurred on the special order. If the order is accepted, what is Missouri Company's change in profits?a $8,000 decreaseb $10,000 increasec $8,000 increased $10,000 decrease
Business
1 answer:
Morgarella [4.7K]3 years ago
7 0

Answer:

If the order is accepted, Missouri Company's change in profits: c $8,000 increase

Explanation:

Gates Company want to purchased 20,000 units at $1.00 each. Current sales would not be affected by the special order and no additional fixed costs would be incurred on the special order.

Total sales of the special order = $1.00 x 20,000 = $20,000

Variable costs are $0.60 per unit.

Total Variable costs of the special order = $0.60 x 20,000 = $12,000

Profit from the special order = Total sales - Total Variable costs = $20,000 - $12,000 = $8,000

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3 years ago
An invention that raises the future marginal product of capital in a closed economy) would cause an increase in desired investme
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Answer:

A) right; increase

Explanation:

In the case of the closed economy when the marginal product of capital increased so it also increased the investment due to which the shifting of the investment curve is rightward and this will result in increase in the real interest rate

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8 0
3 years ago
Kevin bought 300 shares of Intel stock on January 1, 2019, for $90 per share, with a brokerage fee of $200. Then, Kevin sells al
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Answer:

$27,200

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The adjusted basis is the value given to an asset (and used by the IRS) when you have to determine any capital gain or loss resulting from its sale. It should generally be the original cost of purchasing that asset.

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4 0
3 years ago
Wendy wants to start a business. She knows many unaccredited investors who she knows will help her jumpstart her business. What
vodka [1.7K]

Available Options are:

A. Investors' allowable investment depends on the accredited or non-accredited status.

B. Investors may invest a combined $50 million within a 12-month period.

C. Investors may invest no more than $1 million combined for the first year of the business.

Answer:

Option C. Investors may invest no more than $1 million combined for the first year of the business.

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The non-accredited investors do not invest more than $1 million for first year. Furthermore, for Investor it also imposes investment in current business conditions which says that Investor can invest in its business with greater of:

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There is also an option which is available if the net worth of Investor exceeds above $100,000 then he can invest up to lesser of 10% of his income or net worth, otherwise he will have to follow the above conditions.

Here, it also has an upper limit, which means that the investor can not invest more than $100,000 in the subsequent year, whatever the level of net worth or income he had for the year.

This means the non-accredited investor can not invest more than $1 million.

3 0
3 years ago
Genting Berhad is a Malaysian conglomerate with holdings in plantations and tourist resorts. The beta estimated for the firm rel
ehidna [41]

Answer:

25.3%

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