Income increase (decrease) by = (sales - variable cost)*no. Of units in special order
= (31-28)*3000
= $9000 increase
It costs Swifty Corporation $28 of variable costs and $10.40 of allocated fixed costs to produce...
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
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
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
Swifty Corporation can produce 100 units of a component part with the following costs: Direct Materials $19000 Direct Labor 3500 Variable Overhead 17000 Fixed Overhead 11000 If Swifty Corporation can purchase the units externally for $50000, by what amount will its total costs change? a. A decrease of $11000 b. An increase of $50000 c. An increase of $10500 d. An increase of $15500
The following information is available for Swifty Corporation: Sales $560000 Total fixed expenses $150000 Cost of goods sold 360000 Total variable expenses 320000 A CVP income statement would report gross profit of $200000. contribution margin of $240000. contribution margin of $410000. gross profit of $240000. Question 16 It costs Vaughn Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 4800 units at $21...
5. Ink-Well makes pens for $1.00 each, $0.85 of variable costs and $0.15 of allocated fixed overhead per unit, and sells them for $5.00 each. A charity offered to pay $3.00 per pen for a one-time order of 3,500 pens. Ink-well has excess capacity, so the special order would not affect sales. How would operate income changer if the special sales order is accepted? a. Increase of $7,000 b. Decrease of $7,000 c. Increase of $7,525 d.Decreaseof$7,525 According to my...
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
Swifty Corporation sells radios for $50 per unit. The fixed costs are $345000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $25000 and variable costs will be 50% of the selling price. The new break-even point in units is: 12350 14800 13800 17250 Vaughn Manufacturing can produce 100 units of a component part with the following Direct Materials Direct Labor Variable Overhead...
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...
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?...