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MaRussiya [10]
3 years ago
7

It costs Bluffton Company $18.20 of variable costs and $7.80 of fixed costs to produce its product that sells for $39. Cointreau

Company, a foreign buyer, offers to purchase 3,000 units at $23.40 each. If the special offer is accepted and produced with unused capacity, net income will:
Business
1 answer:
Vikentia [17]3 years ago
6 0

Answer:

increase by $15,600

Explanation:

Fixed cost remains constant throughout a period. If production is through the use of idle capacity, fixed cost will not change.

Change is income will result from the total contribution margin realized from the special order.

The total contribution margin is the contribution margin per unit multiplied by total units.

Contribution margin per unit = special offer price - variable costs

=$23.40- $18.20

=$5.20

change in income will be $5.20 x 3000

=$15,600 increase

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Andre45 [30]

Answer:

P5

Explanation:

The value of the stock today is the present value of all the expected cash-flows that are likely to accrue to the investor who buys the share today. If an investor buys the share today, he is likely to receive D1, D2, D3, D4, D5 and in addition, using the going concern concept, the investor is also expected to receive all the dividends from D6 till infinity. The present value of the dividends D5 till infinity is equal to P5.

Imagine an investor who wants to buy the share at the end of year 5. He would value the share at that point by calculating the present value of all his expected cashflows, which would be the present value of D6, D7, D8 etc till infinity. Given a constant growth grate, the Gordon Growth Constant model can be used to find P5 as follows:

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3 years ago
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Sheffield Corp. purchased a truck at the beginning of 2017 for $109200. The truck is estimated to have a salvage value of $3800
laiz [17]

Answer:

Depreciation expense for 2017 = $19,200

Explanation:

We know,

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5 0
3 years ago
The interior decorators, designers, and architects of WorldKraft Design work together in self-managing work groups. This structu
kolbaska11 [484]

Answer:

team interviews.

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question  In this case, it would be wise to use team interviews. By using this technique for interviewing candidates, every section boss can get to know the candidate and decide in which section of the organization they would best fit in.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
4 years ago
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufact
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Answer:

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• At least one will be suffering.

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