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Mrac [35]
3 years ago
11

A foreign company has offered to buy 75 units for a reduced sales price of $320 per unit. The marketing manager says the sale wi

ll not affect the company's regular sales. The sales manager says that this sale will require variable selling and administrative costs. The production manager reports that it would require an additional $20,000 of fixed manufacturing costs to accommodate the specifications of the buyer. If Fruit Computer Company accepts the deal, how will this impact operating income
Business
1 answer:
belka [17]3 years ago
4 0

Answer:

an increase in the operating income by $16,322

Explanation:

The computation of the impact in the operating income is given below:

Variable cost of 75 units (1300000 × 75 ÷ 12700)   7,678

Sale price of 75 units (75 × 320)  24,000

Increase in operating income (24000 - 7678)   $16,322

hence, the impact in the operating income is that there is an increase in the operating income by $16,322

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Discovery of new oil reservoirs and technological developments on oil extraction.

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3 years ago
The date the board of directors votes to declare and pay a cash dividend is called the?
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The date the board of directors votes to declare and pay a cash dividend is called the date of declaration.

<h3>What does the declaration date mean?</h3>

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5 0
1 year ago
A corporation with both preferred stock and common stock outstanding has a substantial credit balance in its retained earnings a
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Answer:

Profit re-investments, purchase of another company, financial troubles

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3 years ago
An advantage of the fixed-period inventory system is that______.
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The correct answer is (B)

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