It costs Lannon Fields $28 of variable costs and $12 of
allocated fixed costs to
produce an industrial trash can that sells for $60. A buyer in
Mexico offers to purchase
3,000 units at $36 each. Lannon Fields has excess capacity and can
handle the
additional production. What effect will acceptance of the offer
have on net income?
a. Decrease $12,000
b. Increase $12,000
c. Increase $108,000
d. Increase $24,000
It costs Lannon Fields $28 of variable costs and $12 of allocated fixed costs to produce...
It costs Swifty Corporation $28 of variable costs and $10.40 of allocated fixed costs to produce an industrial trash can that sells for $52. A buyer in Mexico offers to purchase 3000 units at $31 each. Swifty Corporation has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? Increase $93000 Increase $9000 Decrease $22200 Increase $22200
It costs Crane Company $28 of variable costs and $10.00 of allocated fixed costs to produce an industrial trash can that sells for $50. A buyer in Mexico offers to purchase 3000 units at $30 each. Crane Company has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? Increase $6000 Decrease $24000 Increase $24000 Increase $90000
Question 8 It costs Sheridan Fields $13 of variable costs and $6 of allocated fixed costs to produce an indust Sheridan has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? O decrease $3593 O increase $3593 O increase $52360 increase $12320 LINK TO TEXT Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER
It costs Hannah's Home Supplies $12 of variable and $5 of fixed costs to produce one closet organizer that normally sells for $35. A foreign wholesaler offers to purchase 3,000 closet organizers at $15 each. Hannah's Home Supplies would incur special shipping costs of $1 per closet organizer if the order were accepted. Hannah's Home Supplies has sufficient unused capacity to produce the 3,000 closet organizers. If the special order is accepted, what will be the effect on net income?...
It costs Waterway Industries $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3600 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Waterway has sufficient unused capacity to produce the 3600 scales. If the special order is accepted, what will be the effect on net income? $54000 increase $7200 decrease $10800 decrease $7200 increase
It costs Bonita Industries $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3100 scales at $15 each. Bonita would incur special shipping costs of $1 per scale if the order were accepted. Bonita has sufficient unused capacity to produce the 3100 scales. If the special order is accepted, what will be the effect on net income? 0 $46500 increase $6200 increase $6200 decrease o...
Multiple Choice Question 53 It costs Crane Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3700 scales at $15 cach. Crane would incur special shipping costs of $1 per scale the order were accepted. Crane has sufficient unused capacity to produce the 3700 scales. If the special order is accepted, what will be the effect on net income? 11100 decret $7600 increase $7000...
Multiple Choice Question 53 It costs Marigold Corp. $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1600 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Marigold has sufficient unused capacity to produce the 1600 scales. If the special order is accepted, what will be the effect on net income? $24000 increase $4800 decrease...
It costs your company SR26 per unit (SR18 variable and SR8 fixed) to produce its product, which normally sells for SR38 per unit. A foreign wholesaler offers to purchase 3,000 units at SR21 each. The company would incur special shipping costs of SR2 per unit if the order were accepted. The company has sufficient unused capacity to produce the 3,000 units. If the special order is accepted, it will decrease the net income (SR3,000). Opinion Justification
ACME company manufactures 20,000 bass-o-matic blenders. The company incurs $12/unit of variable costs and $4/unit if fixed costs at this level if production and sells each for $35. A foreign wholesaler offers to purchase 3,000 blenders at $15 each. ACME would incur special shipping costs of $1 each if the order were accepted. ACME has the capacity to produce an additional 5,000 blenders. If the special order is accepted, what will be the effect on net income? A) $45,000 increase...