Answer and Explanation:
The computation is shown below:
Particulares Reject accept increase
order order (decrease)
Revenues 0 $82,680 $82,680
(3,180 × $26)
Cost- manufacturing 0 -$60,420 -$60420
(3,180 × $26)
shipping 0 -$12,720 -$12,720
(3,180 × $4)
net income 0 $9,540 $9,540
Therefore the special order is accepted
Having the answer choices would be helpful!
Answer and Explanation:
The computation of the return on investment is shown below;
We know that
Return on Investment is
= (Net Income ÷ Average Operating Assets] × 100
For Electronics
= [$29,16,000 ÷ 162,00,000] × 100
= 18%
And,
For Sporting goods
= [$20,74,000 ÷ 122,00,000] × 100
= 17%
So here the electronics department should be selected as it has high return on investment