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
soldier1979 [14.2K]
3 years ago
12

Manganese Company makes frames. A customer wants to place a special order for 750 frames in green with the company logo painted

on the frame, to be priced at $60 each. Normally, Manganese would charge $100 per frame for this type of order. Manganese figures that wood and glass will cost $20 per frame, variable overhead (machining, electricity) is $5 per frame, direct labor is $10 per frame. The employee's wages will be paid whether or not the special order is accepted. If Manganese accepts the special order, by how much will operating income increase or decrease?
Business
1 answer:
kobusy [5.1K]3 years ago
7 0

Answer:

The answer is: Manganese's operating income will increase by $26,250

Explanation:

The total order is worth $45,000 (= 750 frames x $60 per frame).

Manganese will spend $20 in direct materials and $5 in variable overhead per frame, which adds up to $25 cost per frame.

Since Manganese will have to pay their workers salary with or without this special order, we can't consider additional labor costs associated with this special order.

So the total revenue is $45,000 and the total additional costs are $18,750.

So the operating income will increase by $26,250 which is the difference between total revenue and total costs (= $45,000 - $18,750)

You might be interested in
The major use of the matrix as a tool in international location strategy is to?
mestny [16]

The major use of the matrix as a tool in international location strategy is to indicate the relative placement of countries in terms of attributes.

A crucial component of a company's success is being in the ideal location. Location frequently affects a company's bottom line and overall profitability. A location strategy is a plan for finding the best site for a business by determining the needs and goals of the organisation and looking for locations with amenities that meet these needs and goals. This typically means that the company will work to maximise opportunities while lowering costs and risks.

A matrix structure combines two or more distinct organisational structure types. It is a way to build up the company's structure so that reporting linkages are established as a grid or matrix rather than in the conventional hierarchy.

Learn more about location strategy here

brainly.com/question/14685434

#SPJ4

7 0
1 year ago
The sales for​ January, February, and March are​ $150,000, $180,000 and​ $220,000, respectively. For any particular month of​ sa
Gekata [30.6K]

Answer:

Total cash= $193,000

Explanation:

Giving the following information:

Estimated sales ($):

January= $150,000

February= $180,000

March= $220,000

40% in cash from that same month of​ sales

50% in cash from the previous​ month's sales

10% in cash from the sales from two months ago

C<u>ash collection March:</u>

From March= 220,000*0.4= 88,000

From February= 180,000*0.5= 90,000

From January= 150,000*0.1= 15,000

Total cash= $193,000

3 0
3 years ago
Residual income is ____________.A. the difference between the net income the analyst expects the firm to generate and the requir
BARSIC [14]

Answer:

A. The difference between the net income the analyst expects the firm to generate and the required earnings of the firm.

Explanation:

Residual income measures an organisation's internal corporate performance by looking at the difference between the income geneated by the firm and the required minimum returns. It can be described as the excess of generated income over required earnings for the firm.

For personal Income, residual income represents the income an individual has left after deducting all personal expenses and all debts.

Based on the question, therefore, residual income will be the excess amount after a company's analysts' deduct the required earnings of the company from what the company generates.  

3 0
3 years ago
On december 31, 2015, cool wear inc. had balances in accounts receivable and allowance for uncollectible accounts of $41,000 and
Wewaii [24]

$6,000.00 - ($2,050.00 - $750.00) =

$6,000.00 - $1,300.00 = $4,700.00

Bad debt expense for 2019 would be: $4,700.00

6 0
3 years ago
The current price of a non-dividend-paying stock is $80. Over the next six months it is expected to rise to $90 or fall to $74.
umka21 [38]

Answer:

Buy 0.8 shares for each option purchased

Explanation:

Calculation to determine What is necessary to hedge the position

Using this formula

N=Vu-Vd/U-D

U = stock price in case of an up move = $36

D = stock price in case of an down move = $26

VU = put option value if stock goes up = $0

VU = put option value if stock goes down = $32 - $26 = $6

Using this formula

N=

−

V

U

−

V

D

U

−

D

N

=

−

0

−

6

36

−

26

N

Now let calculate What is necessary to hedge the position

Value =74 x + 6

Hence,

90x=74x + 6,

x=6/(90-74)

x=6/16

x=.375

3 0
3 years ago
Other questions:
  • When a company uses data from questionnaires and surveys to determine customer preferences, it is utilizing the _____ marketing
    5·2 answers
  • Match the definition with the correct type of unemployment. Not all of the terms will be used. 1.Unemployment caused by recessio
    13·1 answer
  • on January 31,2009,Village Bank had 500000 shares of $2 par value common stock outstanding. On that date the company declared a
    14·1 answer
  • FreshLeaf is a commercial salad maker that produces "salad in a bag" that is sold at many local supermarkets. Its customers like
    14·1 answer
  • Headrest reduce the risk of neck injury in a rear end collision true or false
    8·1 answer
  • Shale oil mining corporation is a u.s. employer. shale oil and other u.s. employers must perform i-9 verifications for
    10·1 answer
  • Zoom In, Inc. is engaged in the business of coding, with an emphasis on Internet marketing, business apps, and intra-corporate n
    6·1 answer
  • Marriage between individuals who have similar social characteristics
    14·1 answer
  • Monetarists believe that changes in the supply of money Question 24 options: do not affect aggregate demand. affect aggregate de
    15·1 answer
  • Which skills do business leaders rate as the most important for college graduates to possess?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!