In Karnes Company it costs $30 per unit ($20 variable and $10 fixed) to make a product
Question:
In Karnes Company it costs $30 per unit ($20 variable and $10 fixed) to make a product that normally sells for $45. A foreign wholesaler offers to buy 4,000 units at $23 each. Karnes will incur special shipping costs of $1 per unit. Assuming that Karnes has excess operating capacity, prepare an incremental analysis that indicates the net income (loss) Karnes would realize by accepting the special order. Should the order be accepted?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
Reject Order Accept Order Net Income Increas...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Question Posted:
Students also viewed these Managerial Accounting questions
-
An organization plans to make a product in batches of 25,000 units. Planned production is 1,000,000 units, and actual production is 1,125,000 units. What are the planned (master budget) number of...
-
A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit and fixed costs increase to...
-
1: Analysis of a simple slope using the Fellenius method of slices (10 marks) Determine the factor of safety ( FoS ) of the trial slip surface of the slope using the Fellenius method of slices....
-
The specifications for the water supply system of the Sears Tower in Chicago require that 100 gpm of water be pumped to a reservoir at the top of the tower, which is 340 m above street level. The...
-
The following information (in U.S. $ millions) was taken from the December 31 financial statements of Potash Corporation of Saskatchewan Inc.: Instructions (a) For 2015 and 2014, calculate Potash's...
-
In the simulation, Jack and Susie demonstrate both negative and positive affect toward one another. Give several examples of each. Gottman speculates that showing interest in one another is a...
-
Extend the analysis of heat transfer over a wedge flow. Derive the following equation for the temperature profile: \[\begin{equation*}\theta^{\prime \prime}+(m+1) \operatorname{Prf} \theta^{\prime}=0...
-
As Jacob walked back to his office after the weekly financial meeting, he reviewed his notes and saw that he had written down two operating income numbers: $110,000 and $50,000. He knew that the...
-
Walton Company measured its quality costs for the past two years and summarized those costs using the four categories shown below: Last Year Appraisal costs Prevention costs Internal failure costs $...
-
Miami Heat Inc. began operations in January2017, and reported the following results for each of its three years of operations. 2017 net loss-P 300,000;2018 net loss-P 30,000; 2019 Profit-P 3,950,000...
-
Ming Company is considering two alternatives. Alternative A will have sales of $150,000 and costs of $100,000. Alternative B will have sales of $180,000 and costs of $120,000. Compare Alternative A...
-
Bartley Manufacturing incurs unit costs of $8 ($5 variable and $3 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 10,000 of the part at $5.30 per unit. If the...
-
What do we mean by the term global consumer culture?
-
What is the network architecture used in e-commerce? Please explain how each layer is related.
-
What is the difference between a thin client and a fat client?
-
What are some of the inherent limitations and disadvantages of a file server system?
-
Have each group member select a different functional group. Individually, draw and name a compound containing your functional group. Pass your drawing to the group member on your right and your...
-
What is a file server system, and what kind of network environment does it use?
-
Which of the following is not an activity in the conversion process? a. Authorize production b. Issue raw material c. Perform work d. Transfer finished goods to customers e. All of these are...
-
To help you become familiar with the accounting standards, this case is designed to take you to the FASBs Web site and have you access various publications. Access the FASBs Web site at...
-
At what speed would an ideal induction motor on frictionless bearings run in vacuum?
-
Jeff Bly has prepared the following list of statements about bonds. 1. Bonds are a form of interest-bearing notes payable. 2. When seeking long-term financing, an advantage of issuing bonds over...
-
Bohlander Airlines is considering two alternatives for the financing of a purchase of a fleet of airplanes. These two alternatives are: 1. Issue 60,000 shares of common stock at $45 per share. (Cash...
-
On January 1, Camel Cove Company issued $500,000, 10%, 10-year bonds at face value. Interest is payable semiannually on July 1 and January 1. Instructions Present journal entries to record the...
-
1. There are missing parts in the program below and fix the bugs: isJavaFun = true; = is Fish Tasty false; System.out.println("Is Java Fun' is JavaFun); System.out.println("Is Fish TASTY" isFish...
-
Write regular expressions in Java for the following: Strings between10and20characters (inclusive) which have odd lengths. The allowed characters here are not specified, and should be considered...
-
These containers are available in four sizes: huge, large, medium, and small, which can hold 50, 20, 5 and 1 widgets, respectively. The cost of each of the containers, at this time, is $35.00 (huge),...
Study smarter with the SolutionInn App