Answer:
Income increased by $315,000
Explanation:
Since there is spare capacity available, we assume there are no incremental fixed costs and as such we only analyze relevant variable costs that vary with the order to identify the possible income effect.
Profit per unit = Order Selling price - Direct + Variable costs
Profit = 100 - 12 - 18 = $70
Total profit from the order = 70*4500 = $315,000
We do not include fixed costs as these will have to be paid regardless of the order. These fixed overheads are probably already absorbed fully given the current production level of 84000 units.
Hope that helps.
The answer is false because it would be a 4 wheel vehicle
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Answer:
Explanation:
std rate $9.00
actual rate $8.50
standard hours 5,200
Total variance: 390 Favorable
Rate variance:
Efficiency
Total:
rate + efficiency
We plug our know values and solve:
0.5actual hours + 46,800 - 9actual hours = 390
46,800 - 390 = 8.5 actual hours
46,410/8.5 = actual hours = 5,460
now we calculate each variance:
rate: 2,730
efficiency (2,340)
Answer:
value of your total investment income 362.80
Explanation:
The computation of the value of your total investment income in two years is shown below
Value of Dividend after 2 years (200 × .20 × 1.07)42.80
Value of Liquidating Dividend (200 × 1.60) 320.00
value of your total investment income 362.80
