1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vesna [10]
3 years ago
11

Falcon Co. produces a single product. Its normal selling price is $26 per unit. The variable costs are $16 per unit. Fixed costs

are $18,900 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,470 units with a special price of $21 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, what would be the impact on net income
Business
1 answer:
xxTIMURxx [149]3 years ago
6 0

Answer:

Effect on income= $10,290 increase

Explanation:

Giving the following information:

Falcon can handle the special order, and for this order, a variable selling cost of <u>$2 per unit would be eliminated.</u>

<u>Because it is a special order that would not affect current sales, we won't take into consideration the fixed costs.</u>

<u></u>

<u>To calculate the effect on income, we need to use the following formula:</u>

Effect on income= Number of units sold*unitary contribution margin

Effect on income= 1,470*(21 - 14)

Effect on income= $10,290 increase

You might be interested in
The transparency of competitive advantage refers to the extent to which
kolbaska11 [484]
The transparency of a competitive advantage refers to the extent to which COMPETITORS CAN IDENTIFY THE REASONS FOR THE COMPETITIVE ADVANTAGE OF ANOTHER COMPANY.
The transparency refers to the speed at which other companies can identify and understand the relationship of resources and capabilities that is supporting a successful company strategy.
7 0
3 years ago
A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as non-payment is: Select one:
ivolga24 [154]

A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as the non-payment is the option(d) i.e, the Acceleration clause.

<h3>What is a mortgage clause?</h3>

A provision in an insurance policy (such as a fire insurance policy) that allows the designated mortgage to receive payment for property damage or loss.

There are different types of clauses:

  • Acceleration clause
  • Due-On-Sale clause
  • Prepayment Penalty clause
  • Subordination clause
  • Release clause

If the borrower breaches the conditions of the agreement, an acceleration clause in a mortgage or trust deed states that the entire obligation is payable immediately. Additionally, it will specify the circumstances under which a lender may request full loan payback. For instance, home loans frequently feature an acceleration provision that kicks in after a certain number of missed payments.

Most of the time, it is harmful to accelerate a loan. Typically, it denotes that the borrower has fallen behind on payments or broken the terms of the agreement, and the lender is requiring prompt repayment of the whole loan balance to avoid foreclosure.

To know more about mortgage clause refer to: brainly.com/question/13964240

#SPJ4

8 0
2 years ago
A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000
max2010maxim [7]

Answer:

Explanation:

a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=150,000/1.12+210,000/1.12^2+360,000/1.12^3

=557580.18

NPV=Present value of inflows-Present value of outflows                  

=557580.18-460,000

=$97580.18(Approx)=Value of factory

b.Hence since net present value is positive;factory is a good investment

(Yes)

7 0
3 years ago
Why should a manager in an international business care about the political economy of free trade or about the relative merits of
Rudik [331]

Answer:

The answer is explained below

Explanation:

To begin with, the policies that the goverments decide to implement in their countries tend to influece in a huge way the companies decisions and therefore its actions as well. Therefore that as a company manager of an international business he needs to stay very updated about the government policies over the countries where his company works. Moreover, the manager will understand that if there is free trade in a country then there will be no problems for his company to start selling there and obtaining the maximum profits as possible and if there is protectionism then the company will have to deal with the policies that the government implemented there. And that is why that as an international business manager he should really care about the policies of the country's government and if there is free trade of protectionism.

6 0
3 years ago
What is the primary purpose of most television commercials?
seraphim [82]

option C to persuade, just took the test

3 0
3 years ago
Read 2 more answers
Other questions:
  • Brad is a sales representative for a Kettle Chips and is preparing for a Super Bowl promotional campaign. He's contacting each o
    12·1 answer
  • Crawford Fishing had a net income of $35,640 in 2022. They decided to pay $3,000 in dividends and keep the rest to help expand t
    8·1 answer
  • A corporation is considering expanding operations to meet growing demand. With the capital expansion the current accounts are ex
    14·1 answer
  • The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 9,219 Accounts r
    5·1 answer
  • The union created when member countries of an economic and monetary union work closely with one another to arrive at common defe
    10·1 answer
  • Kevin, who has liability limits of $20,000/$40,000/$20,000 and a $500 collision deductible, is involved in an accident. Due to h
    15·1 answer
  • Casey Electronics has a piece of machinery that costs $300,000 and is expected to have a useful life of 6 years or 40,000 hours.
    7·1 answer
  • Garcia Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pres
    15·1 answer
  • What does a management accountant need to do before he or she can take
    5·1 answer
  • Which of the following businesses describes a branch?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!