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White raven [17]
2 years ago
10

Tullius Corporation has received a request for a special order of 8,000 units of product C64 for $50.00 each. The normal selling

price of this product is $53.25 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows:
Direct materials $18.10
Direct labor 7.40
Variable manufacturing overhead 5.20
Fixed manufacturing overhead 4.80
Unit product cost $35.50

Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product C64 that would increase the variable costs by $5.00 per unit and that would require a one-time investment of $43,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order.

Required:
How much is the 'effect' (incremental net operating income) on the company's total net operating income through accepting the special order?
Business
1 answer:
levacccp [35]2 years ago
7 0

Answer:

Incremental operating income   = $71,400

Explanation:

Unit variable cost = 18.10 + 7.4+ 5.20 + 5 = $35.7

Note that the $5 additional variable cost was necessitated by the special order , hence it was added

Sales from special order = ( 8,000× $50)                     400,000

Variable cost         ( 8,000 ××  $35.7                              ( 285600 )

Cost of special machine                                              <u>  (43,000)</u>

Incremental operating income                                     <u>   71,400</u>

Incremental operating income   = $71,400

Note that the fixed costs were not considered in the analysis , this simply because they are not relevant to the special order decision.. They would be incurred either way, whether the special order is accepted or not

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Burruss Company developed a static budget at the beginning of the company's period bases on an expected volume of 8,000 units:Re
choli [55]

Answer:

Total fixed cost $16,000

unit fixed cost for 10,000 units $1.60

Explanation:

the budget was made for 8,000 units

so the 2.00 dollars for fixed cost will be based on a production for 8,000 units

total fixed cost: 8,000 budgeted units x $2 per unit = 16,000

This is the level of fixed cost.

<u>For 10,000 units the total fixed cost should be the same.</u>

and for units it will be total cost / units of production

16,000 / 10,000 = 1.6

On unit-level it will drop by 40 cent to $1.60 from $2.00

7 0
2 years ago
In standstill water a steam boat is accelerated 3 m per square from position of rest in an interval of 8 sec determine the dista
iragen [17]

<h2>Given:-</h2>

  • Acceleration ,a = 3m/s

  • Initial velocity ,u = 0m/s

  • Time taken ,t = 8s

<h3>To Find:-</h3>

  • Distance travel by the boat ,s
<h3 /><h3>Solution:-</h3>

We have to calculate the distance covered by the boat in given time interval. Using 2nd equation of motion

<h3>s = ut + 1/2at²</h3><h3 />

where,

v is the final velocity

a is the acceleration

u is the initial velocity

t is the time taken

s is the distance covered

Substitute the value we get

:⟹ s = 0×8 + 1/2×3 × 8²

:⟹ s = 0 + 1/2 × 3 × 64

:⟹ s = 3/2 × 64

:⟹ s = 3 × 32

:⟹ s = 96 m

Hence, the distance covered by the steam boat is 96 metres.

8 0
2 years ago
Read 2 more answers
asset w has an expected return of 15.7 percent and a beta of 1.75. if the risk-free rate is 3.3 percent, what is the market risk
Marizza181 [45]

The market risk premium is 14.12. A market risk premium in finance and economic is used to measure how much the level of risk.

A risk premium means a measure of excess return that is used by an individual to compensate being subjected to an improved degree of risk. A risk premium is the common definition being the expected risky return less the risk-free return.

To find the amount of risk premium, we can calculate it use beta of the stock formula:

Beta of the stock = (expected return - risk-free rate) ÷ risk premium

Because we need the amount of  risk premium, then it will be:

Risk premium = Beta of the stock/(expected return - risk-free rate)

Risk premium =  1.75/(15.7% - 3.3 percent)

Risk premium = 1.75/(0.157 - 0.033)

Risk premium = 1.75/0.124

Risk premium = 14.12

Thus, the market risk premium is 14.12.

Learn more risk premium, here brainly.com/question/28235630

#SPJ4

5 0
11 months ago
Marguerite had been asked by her manager to write a summary of a seminar she had attended. Marguerite’s summary explained that t
Alja [10]

Answer:

language barriers

Explanation:

Since in the question,  it is mentioned that there is excessive use of jargon which results in difficulty to understand what the speaker wants to communicate and due to which it becomes harder to her to follow his presentation.

Here jargon means unique words which unable to understand by the group of people

Therefore this is a language barrier during the seminar

5 0
2 years ago
How can a firm increase the life of a product without involving product changes? a. reintroduction b. product extension c. new p
Vitek1552 [10]

When a firm is experiencing lesser profit it can come up with different strategy to improve its present product rather than developing new product because improving present product involves lesser cost therefore more profit. The answer is B. Product Extension and C. New product placement.

Reintroduction is one way, it is launching the product using more creative sales and marketing strategy. It can target a new market segment, provide more information about the product and use more appealing advertisements. The product’s packaging can also be changed to make it look more attractive and fresh.

Product extension can be use as it is targeting a new market. It can involve exporting the products. This strategy may be costly but when successful will level up your product’s quality as it passed exporting quality. It is changing the market NOT the product.

New product Placement is a strategy where in the products are advertised by placing it in media. The products are shown for example in movies, the character uses the products that way it can give awareness to the viewers how the products can be used and also the brand and name of the products are advertised without direct reference to the product. It doesn’t involve changing the product’s feature only the product placement is changed to a new one.

<span>Rebranding can also be used. It is introducing your product with a new name, changing the product’s name not only its packaging but the total appearance. It gives the product a whole new image to target new image audience or expand its audience.</span>

3 0
3 years ago
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