Business, 24.04.2020 22:11 Badbpyz7550
Merry Toy Company makes toy airplanes. One plane is an excellent replica of the Boeing 737; it sells for $8. Joyous Airlines wants to purchase 15,000 planes at $4 each to give to children flying unaccompanied. Costs per plane are as follows: Direct materials $1.25 Direct labor 2.05 Variable manufacturing overhead 0.50 Variable marketing 0.10 Fixed overhead 0.70 No variable marketing costs would be incurred for the special order. The company is operating significantly below the maximum productive capacity. No fixed costs are avoidable. However, Joyous Airlines wants its own logo and colors on the planes. The cost of the decals is $0.05 per plane, and a special machine costing $2,000 would be required to affix the decals. After the order is complete, the machine would be scrapped. Should the special order be accepted?
a. No, income will decrease by $200.
b. No, income will decrease by $2,500.
c. Yes, income will increase by $250.
d. Yes, income will increase by $600.
e. It doesn't matter; there will be no change in income.
Answers: 3
Business, 21.06.2019 20:50
Which of the following statements is not correct? 1) trade allows for specialization. 2) trade has the potential to benefit all nations. 3) trade allows nations to consume outside of their production possibilities curves. 4) absolute advantage is the driving force of specialization.
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Business, 21.06.2019 21:40
Prior to its closing, income summary had total debits of $1,190,500 and total credits of $1,476,300. what purpose is served by the income summary account and what is the nature of the entries that resulted in the $1,190,500 and the $1,476,300? the income summary account is used to the accounts. the $1,190,500 represents the , and the $1,476,300 represents . the company had of $ .
Answers: 1
Business, 22.06.2019 11:00
Factors like the unemployment rate,the stock market,global trade,economic policy,and the economic situation of other countries have no influence on the financial status of individuals. true or false
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