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jeka94
3 years ago
12

At Bargain Electronics, it costs $29 per unit ($16 variable and $13 fixed) to make an MP3 player that normally sells for $50. A

foreign wholesaler offers to buy 3,480 units at $27 each. Bargain Electronics will incur special shipping costs of $1 per unit. Assuming that Bargain Electronics has excess operating capacity.
Required:
Indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
Business
1 answer:
hjlf3 years ago
5 0

Answer:

$34,800.

Explanation:

                           Reject               Accept

Revenues             $0        (3480*27) = $93,960     $93,960

Costs                    $0        (3480*16) = -$55,680  -$55,680

Shipping               $0        (3480*1) = -3480           -<u>$3,480   </u>

Net income          $0         34,800                          <u>$34,800</u>

So, the net income that Bargain Electronics would realize by accepting the special order is $34,800.

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Andre Company does not segregate sales and sales taxes when it charges customers at the register. Its register total for a given
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Answer:C- $5,381 and $343

Explanation:

Andre Company had sales of $5,724 which has a 6% sales tax included in the sales.

Therefore we need to calculate what the sales tax component in the sales figure is. It is calculated thus:

Total sales including tax = $5, 724

Sales tax charged is 6%

Therefore actual sales = $5,724 * 6%

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Adjusted sales is $5,724-$343= $5,381.

Adjusted Sales figure is $5,381

Tax on sales is $343

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