It’s TRUE I took the test
Answer:
does it need an attachment to it in order to answer it ?
Explanation:
Answer:
Effect on income= $4,875 increase
Explanation:
Giving the following formula:
Production costs:
Direct materials$2.55
Direct labor 7.85
Variable manufacturing overhead 6.95
Total= $17.35
Special offer:
Selling price= $26.9
Number of units= 4,300
Increase in variable cost= $3.3
Increase in fixed costs= $22,000
<u>Because it is a special offer and there is unused capacity, we will take into account only the incremental fixed costs.</u>
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<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= incremental contribution margin - incremental fixed costs
Effect on income= 4,300*(26.9 - 17.35 - 3.3) - 22,000
Effect on income= $4,875 increase
Answer:
Do a pilot study
Explanation:
In order for the management to be assured that the product works, a pilot study needs to be done. This involves the sampling out of the small number of the useful product. In doing so, they can monitor the sales and see how they do on the market. From the market study, they can then increase the production of the material to the target potential customer. This makes the business to be powerful and realize profits an minimize losses.