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konstantin123 [22]
3 years ago
12

It costs Sheridan Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A fo

reign wholesaler offers to purchase 1700 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Sheridan has sufficient unused capacity to produce the 1700 scales. If the special order is accepted, what will be the effect on net income
Business
1 answer:
jeka943 years ago
7 0

Answer:

$3,400 Increase

Explanation:

Computation to determine what will be the effect on net income

Using this formula

Effect on net income = Units ordered * (Special price - Variable cost)

Let plug in the formula

Effect on net income = 1700 * [$15- ($12+$1)]

Effect on net income = 1700 * ($15 -$13)

Effect on net income = 1700 *$2

Effect on net income = $3,400 Increase

Therefore If the special order is accepted, what will be the effect on net income will be $3,400 Increase

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I had to look for the options and here is my answer:
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5 0
3 years ago
On January 1, Year 1, Frost Co. entered into a 2-year lease agreement with Ananz Co. to lease a new computer. The lease term beg
satela [25.4K]

Answer:

Frost (Lessee) and Ananz (Lessor)

The circumstance that would require Frost to classify and account for the arrangement as a finance lease is:

c. The economic life of the computers is three years.

Explanation:

a) Data:

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5 0
3 years ago
“For deposit only” is what type of endorsement check?
MrRissso [65]
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8 0
3 years ago
Read 2 more answers
On Jan 5, a customer returned merchandise that had been purchased earlier on credit. The original sale was for $500, and the cos
Elodia [21]

Answer:

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Explanation:

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Credit Accounts Receivable $500

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igor_vitrenko [27]

Answer:

True

Explanation:

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<em>ROI is measure of the returned earned by a division relative to the amount invested in the assets used to generate the return. </em>

It is calculated as follows  

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