subject
Business, 12.08.2020 04:01 chjam265

A company manufactures a product that is sold for $37.95 each. Plant capacity is 750,000 units annually, but normal volume is 500,000 units. Costs at a normal volume are given below. Unit Cost
Direct Materials $9.89
Direct Labor $4.27
Variable Manufacturing Overhead $11.06
Fixed Costs $4.37
Selling and Administrative Variable Expense $2.03
A customer offered to purchase 50,000 units at $34.32 each to be packaged in large cartons, not the normal individual product containers. It will pick up the units in its own trucks. Thus, variable selling and administrative expense per unit will decrease by 57%.
What is the extra operating income this company will receive if they accept this order (Enter your answer for ALL 50,000 units in the special order).

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 08:20
Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above
Answers: 2
question
Business, 22.06.2019 15:40
Aprice control is: question 1 options: a)a tax on the sale of a good that controls the market price.b)an upper limit on the quantity of some good that can be bought or sold.c)a legal restriction on how high or low a price in a market may go.d)control of the price of a good by the firm that produces it.
Answers: 1
question
Business, 22.06.2019 17:20
Andy owns islander surfboard inc. in the past, andy has always given his employees bonuses during the holidays if they reached certain sales goals. this year, even though the company is thriving, he decided to cut bonuses from employees and award them to himself instead. what ethical theory of leadership is andy following?
Answers: 1
question
Business, 22.06.2019 19:20
This problem has been solved! see the answerwhich of the following statements is correct? the consumer price index is a measure of the overall level of prices, whereas the gdp deflator is not a measure of the overall level of prices. if, in the year 2011, the consumer price index has a value of 123.50, then the inflation rate for 2011 must be 23.50 percent. compared to the gdp deflator, the consumer price index is the more common gauge of inflation. the consumer price index and the gdp deflator reflect the goods and services bought by consumers equally well.
Answers: 2
You know the right answer?
A company manufactures a product that is sold for $37.95 each. Plant capacity is 750,000 units annua...
Questions
question
Geography, 05.05.2020 09:42
question
Mathematics, 05.05.2020 09:42
question
Mathematics, 05.05.2020 09:42
question
English, 05.05.2020 09:42
question
English, 05.05.2020 09:42
Questions on the website: 13722367