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Fantom [35]
2 years ago
11

It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200 that sells for $30. A foreign buyer offer

s to purchase 3,000 units at $18 each. The seller will incur special shipping costs of $5 per unit. If the special offer is accepted and produced with unused capacity, and none of the fixed costs are affected, then net income will:
Business
1 answer:
Andrej [43]2 years ago
7 0

Answer:

the net income would be decreased by $3,000

Explanation:

The computation of the net income is shown below;

Total cost is

= $14 + $5

= $19 per unit

And, the Selling price is $18 per unit

Now

Income = Revenue - Cost

= $18 - $19

= -1 per unit

And, finally

Total Income = 3000 units × (-1)

= -$3000

Hence, the net income would be decreased by $3,000

You might be interested in
The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing
ehidna [41]

Answer: Cross docking

Explanation:

The cross docking is one of the logistics procedure in which the various types of goods and the services are directly distributed from supplier to the consumers.

The main aim of the cross docking process is that it helps in increase the efficiency in the supply chain and it is used for handling the inventory system.

It is the process in which the the shipment are received, repacking of the shipments and then it is supply to the customers by the distribution center.

Therefore, Cross docking is the correct answer.  

6 0
2 years ago
A 50-year old customer is in a very low tax bracket. She lives in a state that has one of the highest income tax rates. The cust
zvonat [6]

Answer:

b. investment grade corporate bond

Explanation:

Credit rating is used to show the reliability of a security. The Investment Grade is a credit rating the is low risk bond. There is low possiblity of default on this type of investment.

Medium rating of A and BBB represent the investment grade corporate bond.

This is an attractive investment for the more conservative investor.

This is an ideal investment choice for the 50-year old customer with very low tax bracket, in a state with high income tax rates. So she is seeking income and preservation of capital.

3 0
2 years ago
Both buyers and sellers are price takers in a perfectly competitive market because
Paladinen [302]

Answer:

The price is determined by government intervention and dictated to buyers anti sellers each buyer and teller knows it it illegal to conspire to affect price.

Explanation:

A perfectly competitive firm is a price taker, which implies that it must acknowledge the equilibrium price at which it sells products. In the event that a perfectly competitive firm attempts to charge even a modest sum more than the market price, it will be not able make any sales.

7 0
3 years ago
On January 1, Puckett Company paid $1.71 million for 57,000 shares of Harrison’s voting common stock, which represents a 40 perc
vaieri [72.5K]

Answer:

Total 1,775,000

Explanation:

1.71m for 57,000 shares -->40% investment

$3 dividends per share

net income of 590,000

1.,710,000

+ 40% of net income 590,000  =   236,000

- 57,000 x $3 dividends per share = -171,000

The dividends under the equity method mean it is moving cash from one box (Harrison) to the main company (Puckett) so they decrease the Harrison valuation and increase cash, giving no effect on the assets of Puckett.

Total 1,775,000

5 0
3 years ago
A property was purchased by an investor. The property is expected to produce $200,000 of annual net operating income in year 1;
weqwewe [10]

Answer:

$13,333.33

Explanation:

Debt service coverage ratio = Net operating income in year 1 / Annual debt service

Annual debt service = Net operating income in year 1 / Debt service coverage ratio

Annual debt service = $200,000 / 1.25

Annual debt service = $160,000

1 years = 12 months

Monthly mortgage payment = Annual debt service / 12 months

Monthly mortgage payment = $160,000 / 12

Monthly mortgage payment = $13333.33333333333

Monthly mortgage payment = $13,333.33

So,  the maximum monthly mortgage payment is $13,333.33.

3 0
2 years ago
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