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Ira Lisetskai [31]
3 years ago
8

Dary Co. Produces a single product. Its normal selling price is $28 per unit. The variable costs are $18 per unit. Fixed costs a

re $20,000 for a normal production run of 5,000 units per month. Dary received a request for a special order that would not interfere with normal sales. The order was for 1,500 units and a special price of $17.50 per unit. Dary Co. has the capacity to handle the special order and, for this order, a variable selling cost of $2 per unit would be eliminated.
1. If the order is accepted, what would be the impact on net income?

a. decrease of $750
b. decrease of S6,750
c. increase of $2,250
d. increase of $1,500

2. Should the special order be accepted?

a. Cannot determine from the data given
b. Yes
c. No
d. There would be no difference in accepting or rejecting the special order.
Business
1 answer:
aleksandr82 [10.1K]3 years ago
4 0

Answer:

1. c. increase of $2,250

2. b. Yes

Explanation:

1. Calculation to determine what would be the impact on net income if the order is accepted

First step is to calculate the variable cost

Variable cost special order= ($18-$2)

Variable cost special order=$16

Now let calculate what would be the impact on net income if the order is accepted

Impact on net income=($17.50-$16)*1,500 units

Impact on net income=$1.50*1,500 units

Impact on net income= increase of $2,250

2. YES the special order should be accepted.

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Justin Company's budget includes the following credit sales for the current year: September, $40,000; October, $51,000; November
zheka24 [161]

Answer:

$45,350

Explanation:

Follow the Company`s collection history to determine the November Cash Collection.

November Cash Collection :

Collected in month of sale - 15% x $45,000                       $6,750

Collected for 1st month after sale - 60% x $51,000         $30,600

Collected for 2nd month after sale - 20% x $40,000        $8,000

Total                                                                                     $45,350

Therefore,

The cash Justin can expect to collect in November is $45,350

7 0
3 years ago
One type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar
raketka [301]

Answer:

She is better off by $40,

Please kindly go through the explanation section for rest of the answers.

Explanation:

From the Question,

Grocery saving = 40%

Laptop saving = 2.5%

Absolute saving in grocery = $4

Absolute saving in Laptop =$10

Yes he should sacrifice 20 mins to save $10 since he does the same for less savings

Second case:

Since Ted is depositing money for only 6 months at 10% interest rate, he is giving up half his annual interest of (0.1*750)/2 = $37.5

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She is better off by $40.

7 0
3 years ago
According to the Fisher effect, if the "real" rate of interest in a country is 3 percent and the expected annual inflation is 8
Pachacha [2.7K]

Answer:

11.24%

Explanation:

Fisher equation:

(1 + nominal interest rate) = (1 + real interest rate) x (1 + expected annual inflation)

1 + nominal interest rate = 1.03 x 1.08

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3 0
3 years ago
Suppose Yamahonda, a Japanese-owned motorcycle manufacturer, builds a production plant in Alabama. This is an example of foreign
Alika [10]

Answer:

The statement is true, as it is an example of foreign direct investment.

Explanation:

Foreign direct investment is the direct investment by individuals or legal persons in production or business operations abroad. In this context, investments include both acquisition of foreign operations and expansion of own operations.  

Foreign direct investment does not include the purchase of either shares or bonds per se. More specifically, the IMF has restricted direct investment on acquisitions to cases where the foreign investor owns 10% or more of the shares that give administrative rights in the business. Investment funds that can be classified as foreign direct investments therefore include equity deposits, reinvestments of dividends from the business, as well as the allocation of short-term and long-term loans between parent companies and subsidiaries.  

3 0
2 years ago
Lake City enacts an ordinance that bans the distribu-tion of all printed materials on city streets. Mackensie opposes the city's
loris [4]

Answer:

c. ​unconstitutional under the First Amendment.

Explanation:

Under the first amendment the act of banning such printed materials is unconstitutional. As it is not good for people in the country to witness such things.

As printed material includes books, magazines, and other things which enhance the knowledge level of different people.

Therefore, banning printed material will make the country people short of knowledgeable resources.

Therefore, the court will announce it unconstitutional.

4 0
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