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gavmur [86]
3 years ago
15

Cincinnati t-shirts prints custom t-shirts. The cost to produce one shirt is: direct materials, $10; direct labor, $1.20; and ma

nufacturing overhead $4.50. Cincinnati Children’s Hospital asked Cincinnati t-shirt to sell them custom t-shirts for $12 each for a local charity event. Direct material and direct labor are required for each t-shirt. Of the manufacturing overhead, $1.50 is variable and would be incurred on each additional unit. The remaining $3 in overhead is allocated fixed overhead that would not be increased or decreased by this order. What would be the effect on net income if they accept this special order and sell 200 shirts to Cincinnati Children’s Hospital for $12 each?
Business
1 answer:
egoroff_w [7]3 years ago
5 0

Answer:

Effect on income= $140 decrease

Explanation:

Giving the following formula:

Production costs:

Direct material= 10

Direct labor= 1.2

Variable overhead= $1.5

Selling price= $12

Number of units= 200

<u>Because it is a special offer and there is unused capacity, we will not take into account the fixed costs. </u>

Effect on income= Units sold*unitary contribution margin

Effect on income= 200*(12 - 10 - 1.2 - 1.5)

Effect on income= $140 decrease

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harina [27]

Answer:

Answer for the question  

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8 0
3 years ago
What is the difference between earned income, passive income, and investment income?
Rudiy27

Explanation:

Earned income consists of income you earn while you are working a full-time job or running a business.

Passive income is income earned from rents, royalties, and stakes in limited partnerships.

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4 0
2 years ago
A bank has stock shares of $100,000, property assets of $90,000, and cash of $10,000. If households and businesses decide to dep
Llana [10]

The answer is stock shares = $100,000, property assets = $90,000,       cash = $60,000, and loans & advences = $50,000

Given,

stock shares = $100,000,

property assets = $90,000,

and cash = $10,000.

households and businesses decide to deposit $50,000 in the bank as checkable deposits.

The balance sheet is a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time.

It also details the balance of income and expenditure over the preceding period.

Therefore when households and businesses decide to deposit $50,000 in the bank as checkable deposits, it will be shown in balance sheet as:

Cash = Previous balance + checkable deposits

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Loans & advances : checkable deposits = $50,000

Hence, the balance sheet will be stock shares = $100,000, property assets = $90,000, cash = $60,000, and loans & advences = $50,000.

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8 0
2 years ago
The common stock of CTI has an expected return of 14.48 percent. The return on the market is 11.6 percent and the risk-free rate
Bezzdna [24]

Answer:

1.35

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14.48 = 3.42 + b(11.6 - 3.42)

14.48 = 3.42 + b8.18

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3 years ago
What is the major determinant of supply? 
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The available demand and goods
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