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
marshall27 [118]
3 years ago
5

Falcon Co. produces a single product. Its normal selling price is $29 per unit. The variable costs are $15 per unit. Fixed costs

are $20,900 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,680 units with a special price of $20 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, the differential effect on profit would be a
Business
1 answer:
Elan Coil [88]3 years ago
5 0

Answer:

$11,760

Explanation:

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income/profit.

Without the new offer

Profit = 5000($29 - $15) - $20,900

= $70,000 - $20,900

= $49,100

For the new order a variable selling cost of $2 per unit would be eliminated, the contribution of the order will be

= 1680($20 - $15 + $2)

= 1680 * $7

= $11,760

This is the differential effect on profit.

You might be interested in
job ________ involves division of an organization’s work among its employees and application of motivational theories to jobs to
jeka94
Dfhtddffgvcdfgggvvcdcvbhhjjjjjjjjrr the Eder
6 0
2 years ago
The following information is for the Jeffries​ Corporation: Product​ A: Revenue ​$18.00 Variable Cost ​$14.00 Product​ B: Revenu
shusha [124]

Jeffries Corporation's Operating Income from the two products is <em>A. ​$35,000.</em>

The operating income is the difference between the revenue and operating costs (variable and fixed costs).

Data and Calculations:

                             Product A     Product B     Total

Revenue                 $18.00           $21.00

Variable cost            14.00              13.00

Contribution            $4.00             $8.00

Fixed costs                                                 $143,000

Total sales units                                            35,600

Sales mix                  3                        1               4

Sales units             26,700           8,900      35,600

Total contribution$106,800      $71,200  $178,000

Total fixed costs                                          143,000

Operating income                                      $35,000

Thus, the operating income is $35,000.

Read more: brainly.com/question/14815746

 

5 0
2 years ago
What is a success for a coffe shop
Snowcat [4.5K]
Good coffee and a friendly environment. Having a run down shop for your coffee shops not very welcoming nor kid and adult friendly. <span />
4 0
3 years ago
Read 2 more answers
It's an opportunity to give a good impression or introduction of yourself. It can capture the attention of a potential employer
GalinKa [24]

Answer:

Period

Explanation:

6 0
2 years ago
At the beginning of this month, the balance of Cody's checking account was $125.26. So far this month, he has received a paychec
ddd [48]
The answer is going to be d
5 0
3 years ago
Read 2 more answers
Other questions:
  • A tax on the total value of the money and property of a person who has died
    12·1 answer
  • Your bank account pays a 5% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is
    14·1 answer
  • Crown Company established a petty cash fund of $600 for incidental expenditures on January 2, 2019. At the end of the month, the
    14·1 answer
  • The lesson of easter island was that ________. economics is an important facilitator of sustainable societies conservation of re
    9·1 answer
  • A local political party made phone calls to assess likely voter turnout. The only question asked in the telephone interview was
    6·2 answers
  • Closing entries and a post-closing trial balance are steps in the accounting cycle that occurA :  quarterly. B :  monthly. C : 
    14·1 answer
  • Identify two changes to personal information which you must report to your employer.
    10·1 answer
  • Hi, I need a catchy slogan for my business project my business is about sewing so please if you can include something using that
    10·2 answers
  • Suppose you will receive a payment of $300 one year from now. True or False: If during the year the interest rate rises, this in
    14·1 answer
  • A system that collects and stores the company's key data and produces the information needed by managers for analysis, control,
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!