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
algol [13]
3 years ago
6

The following information relates to a product produced by Orca Company: Fixed selling costs are $1,000,000 per year. Although p

roduction capacity is 500,000 units per year, Orca expects to produce only 400,000 units next year. The product normally sells for $80 each. A customer has offered to buy 60,000 units for $60 each. The customer will pay the transportation charge on the units purchased. If Orca accepts the special order, the effect on operating profits would be a:
Business
1 answer:
julia-pushkina [17]3 years ago
4 0

Answer,:

increase in operating income by $840,000

Explanation:

The computation is shown below:

Offer price per unit $60

Less: Variable costs per unit:  

  Direct materials ($20)

  Direct labor ($14)

  Variable overhead ($12)

  Variable selling $0

Incremental profit per unit (a) $14

Units offered to sell (b) 60,000

Effect on Operating Income (Increase) (a × b) $840,000

Therefore, in the case when the special order is accepted, the effect on operating income would be increase by $840,000

You might be interested in
There is only one accepted format for a formal business letter.<br><br> True<br> False
Dimas [21]

False, there are more than one accepted letter format.

Let's get further into learning this:

There are two basic groups, The Block Format and The Various Indented formats.

Stay Happy!

7 0
3 years ago
In many developing countries, the amount paid in ___________________ was as much as the combined amount for water, health, agric
Marianna [84]

In many developing countries, the share paid in a deficit budget was as much as the united amount for water, health, agriculture, roads, transport and finance.

<h3>What is the surplus and deficit budget?</h3>

A budget surplus is when extra money is gone over in a budget after expenses are paid. A budget deficit ensues when the federal government spends more money than it contains in revenue. Internal loans that drive up for the bulk of public debt are further divided into two broad types – marketable and non-marketable debt.

Anyone having borrowed funds or interests from another owes a debt and is beneath obligation to return the goods or repay the funds, usually with interest. For governments, the demand to borrow to finance a deficit budget has led to the growth of various states of national debt.

To learn more about the deficit budget visit the link

brainly.com/question/10876388

#SPJ4

6 0
1 year ago
How much increase in net worth (equity) would a market basis balance sheet show over a cost basis if Land was purchased for $1,0
Pachacha [2.7K]

Answer: $4,050,000

Explanation:

Increase in net worth shows the after tax gain that the person got after the land in question increased in value.

= (Current value - Purchase price) * ( 1 - tax rate)

= (5,500,000 - 1,000,000) * (1 - 10%)

= 4,500,000 * 0.90

= $4,050,000

3 0
3 years ago
Left, right, center,and justify are types of what
forsale [732]

Answer:

Justified Alignment

Explanation:

The type of text alignment that is frequently seen in newspaper,magazines,and books(both the left and the right sides of the paragraph are perfectly straight).I'm sorry if it was wrong.

brainliest plz ;-;

8 0
3 years ago
Which is the difference between marginal cost and marginal revenue
Vinil7 [7]

Plsss hit as brainliest

4 0
3 years ago
Other questions:
  • The two major forms of employee involvement are participative management and​ ________.
    5·1 answer
  • when choosing over the next best alternative due to trade offs faced, what is given up is called the​
    15·1 answer
  • In its simplest form, Amdahl’s Law maintains that if a given program would take one hour to run to completion with one processor
    12·1 answer
  • Balance sheets prepared under IFRS: Multiple Choice must list assets, but not liabilities in order of liquidity. may list assets
    14·2 answers
  • The roles of money Sam just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down pay
    7·1 answer
  • A property is sold for $150,000 with the buyer agrees to assume an existing loan of $98,000 and executing a second note and deed
    7·1 answer
  • Which fifth factor of production do many economists now include in addition to the four traditional factors of​ labor, capital,​
    14·2 answers
  • CDB stock is currently priced at $80. The company will pay a dividend of $4.57 next year and investors require a return of 10.8
    14·1 answer
  • Plz help :)
    7·1 answer
  • Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will income equal if sales are $325
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!