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
Zepler [3.9K]
3 years ago
5

Marx Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are

$0.50 per unit and fixed costs are $0.50 per unit. Current monthly sales are 183,000 units. Heaven Company has contacted Marx Company about purchasing 15,000 units at $1.00 each. Current sales would not be affected by the special order and no additional fixed costs would be incurred on the special order. Marx Company's change in profits if the order is accepted will be:
Business
2 answers:
Misha Larkins [42]3 years ago
5 0

Answer:

Effect on income= 7,500 increase

Explanation:

Giving the following information:

Variable costs are $0.50 per unit.

Current monthly sales are 183,000 units.

Heaven Company has contacted Marx Company about purchasing 15,000 units at $1.00 each.

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

Sales= 15,000*1= 15,000

Variable cost= 15,000*0.5= (7,500)

Effect on income= 7,500 increase

oee [108]3 years ago
3 0

Answer:

Increase of $7,500

Explanation:

Consider the Incremental Costs and revenues arising from acceptance of the offer.

Note : Fixed Costs will not increase as the offer is within the capacity of Marx Company and are therefore irrelevant for this decision.

Sales(15,000×$1.00)                             $15,000

Less variable costs (15,000×$0.50)    ($7,500)

Net Income                                            $7,500

Therefore an increase of $7,500 is expected in profits if Marx Company accepts the order

You might be interested in
Kkkkkkkkkkkkkkkkkk<br>kkkkkkkkkkkkkkkkkkk
DedPeter [7]

it is correc tbecuas it is that why it is a

3 0
2 years ago
Pine Street Inc. makes unfinished bookcases that it sells for $58.09. Production costs are $37.97 variable and $10.12 fixed. Bec
Citrus2011 [14]

Answer:

Check the table in the explanation

Explanation:

Differential analysis

                               Sell            Process             Net income                                                     unfinished       further         increase  (decrease)

Sale price per unit    58.09          73.08                 14.99

Cost per unit    

variable                      37.97           44.61                 -6.64

Fixed                          10.12            10.12                     0

total                            48.09           54.73                8.35

Net income per unit      10            18.35                  8.35

The book cases should be sold after processed further

7 0
3 years ago
For seven years, Bonnie Patterson has been a manager at Wayne and Watson, a legal consultancy firm. A good part of her workday i
Blababa [14]

Answer:

Nominal Approach

Explanation:

The approach which is followed by manager is the Nominal approach or technique, it is that technique which involves the group process comprise of solution generation, decision making and problem identification.

It can be used many sizes of the group, who want to take a decision as by vote, rank but include everyone opinions. Therefore, in situation, this approach is used.

5 0
3 years ago
Tom is trying to quit smoking. His parents, siblings, wife, children, and his doctor have all emphasized to him how important it
4vir4ik [10]

Answer:

perceived behavioral control

Explanation:

According to my research on the theory of planned behavior, I can say that based on the information provided within the question the factor most likely to interfere with Tom quitting smoking is his perceived behavioral control. This is defined as the individuals perception of believing whether or not a behavior is within their control. If Tom does not believe quitting smoking is in his control, then he will not be able to quit regardless of how many people tell him how important it is to do so.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Read 2 more answers
_______is the practice whereby a foreign producer intentionally sells its products in the United States for less than the cost o
Sonja [21]

Predatory Pricing is the practice whereby a foreign producer intentionally sells its products in the United States for less than the cost of production to undermine the competition and take control of the market.

<h3><u>Explanation:</u></h3>

hen there is a situation in the market whereby the products are sold at a cost very low than the cost of other suppliers refers to the predatory pricing. When predatory pricing is practiced then the suppliers with lower price will alone survive in the market making all the other suppliers to forcefully leave the market.

This kind of act is illegal. This is because predatory pricing will eradicate the competition. The main aim of this type of pricing is to eliminate the small business from the market. In the given scenario, a foreign producer is selling its products intentionally at lower price in U.S for the lower cost than the cost of production and takes the market to its control which is an example of Predatory Pricing.

4 0
3 years ago
Other questions:
  • Select the correct statement about HR responsibilities of supervisors.A. Supervisors do not interview job candidates.B. In large
    14·1 answer
  • Which best describes the reason situational leadership is so practical for managers to use?
    5·1 answer
  • One of the biggest mistakes you can make during an interview is failing to match the interviewer’s communication style. Please s
    6·2 answers
  • The primary purpose of the legal reserve requirement is toa. Prevent banks from hoarding too much vault cash.b. Provide a means
    13·1 answer
  • ____ materials are designed to get you to buy a product or service.
    8·1 answer
  • What is the law of demand? ​
    6·2 answers
  • The following accounts appear in the ledger of Oriole Company after the books are closed at December 31, 2020.
    6·2 answers
  • In what ways are consumer preferences changing in Ford’s different market segments and geographies? Are consumers able to articu
    5·1 answer
  • A company's unit costs based on 100,000 units are:
    5·1 answer
  • What is the amount of government revenue after the government imposes the excise tax on the market?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!