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Talja [164]
2 years ago
10

Edison's Lights makes light bulbs. The company is currently producing well below its full capacity. Lamp Land has approached Edi

son's Lights with an offer to buy 20,000 light bulbs at $0.75 each. Edison;s Lights sells its light bulbs wholesale for $0.85 each; the average cost per unit is $0.83, of which $0.12 is fixed costs. If Edison's Lights were to accept Lamp Land's offer, what would be the increase in Edison's Lights' operating profits?
Business
1 answer:
Korvikt [17]2 years ago
5 0

Answer:

the increase in Edison's Lights' operating profits would be  $400

Explanation:

<u>Analysis of the effects of Accepting Lamp Land's offer</u>

Sales (20,000 x $0.75)                                   $15,000

Less Incremental Costs :

Variable Cost (20,000 x $0.73)                     ($14,600)

Operating Profit                                                    $400

thus

If Edison's Lights were to accept Lamp Land's offer, the increase in Edison's Lights' operating profits would be  $400

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Why might one firm have positive cash flows and be headed for financial trouble?
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3 years ago
the factor which determines whether or not goods should be included in a physical count of inventory is
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7 0
2 years ago
Which retail chain has a logo featuring a caricature of the faces of the three founders?.
nignag [31]

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<h3>What is a retail chain ?</h3>

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6 0
2 years ago
$159 per unit $205 per unit $166 per unit $292 per unit Olds Inc., which produces a single product, has provided the following d
ruslelena [56]

Answer:

Unit product cost= $204

Explanation:

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3 years ago
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