Business, 18.08.2021 02:10 dhurtado1195
The Varian Company makes a single product called a Horn. The company has the capacity to produce 40,000 Horns per year. Per unit costs to produce and sell one Horn at that activity level are: The regular selling price for one Horn is $60. A special order has been received at Varian from the Fairview Company to purchase 8,000 Homs next year at 15% off the regular selling price. If this special order were accepted, the variable selling expense would be reduced by 25%. However, Varian would have to purchase a specialized machine to engrave the Fairview name on each Horn in the special order. This machine would cost $12,000 and it would have no use after the special order was filled. The total fixed costs, both manufacturing and selling, are constant within the relevant range of 30,000 to 40,000 Homs per year. Assume direct labor is a variable cost. 5. If Varian can expect to sell 32,000 Homs next year through regular channels and the special order is accepted at 15% off the regular selling price, the effect on net operating income next year due to accepting this order would be a: A. $52,000 increase B. $80,000 increase C. $24,000 decrease D. $68,000 increase
Answers: 1
Business, 22.06.2019 08:50
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Business, 22.06.2019 09:30
Which are the best examples of costs that should be considered when creating a project budget?
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Business, 22.06.2019 21:20
Which of the following best explains why buying a house is more beneficial than renting? a. buying is a personal investment while renting involves giving money to the landlord. b. the monthly payments on a mortgage are generally lower than rent on an apartment. c. it's easier to sell a house than it is to get a landlord to break a rental agreement. d. housing prices can go up and down quickly in comparison to the level of rents.
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The Varian Company makes a single product called a Horn. The company has the capacity to produce 40,...
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