Ag9-y6R Company has just obtained a request for a special order of 10,000 units to be...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ag9-y6R Company has just obtained a request for a special order of 10,000 units to be shipped at the end of the month at a selling price of $31 each. The company has a production capacity of 80,000 units per month. At present, the company is selling 76,000 units per month through regular channels at a selling price of $36 each. For these regular sales, the cost for one unit is: variable production costs fixed production costs variable selling expenses ****. XHE HAKEECEEEEEE EFFET HOTE $7.70 $4.40 $3.90 Ag9-y6R Company will not incur any selling expenses on the special order units. However, the special order units will require an additional shipping cost of $0.70 per unit. Calculate the amount by which Ag9-y6R Company's net income will increase if they accept the special order. Ag9-y6R Company has just obtained a request for a special order of 10,000 units to be shipped at the end of the month at a selling price of $31 each. The company has a production capacity of 80,000 units per month. At present, the company is selling 76,000 units per month through regular channels at a selling price of $36 each. For these regular sales, the cost for one unit is: variable production costs fixed production costs variable selling expenses ****. XHE HAKEECEEEEEE EFFET HOTE $7.70 $4.40 $3.90 Ag9-y6R Company will not incur any selling expenses on the special order units. However, the special order units will require an additional shipping cost of $0.70 per unit. Calculate the amount by which Ag9-y6R Company's net income will increase if they accept the special order.
Expert Answer:
Answer rating: 100% (QA)
To calculate the amount by which Ag9y6R Companys net income will increase if t... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The Immanuel Company has the capacity to produce 75,000 bins per month. Fixed production costs are $120,000 per month, and the company currently sells 70,000 bins at $13 each based on the following...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Baxter Ltd requires a new machine to use in the manufacture of a new product. Two machines are available: Big Gee and Maxi-Shadbolt. Baxter Ltd. depreciates machinery using the straight-line method....
-
A proton moving horizontally enters a uniform magnetic field perpendicular to the protons velocity, as shown in Figure Q29.17. Describe the subsequent motion of the proton. How would an electron...
-
In Figure, two particles, each with mass m = 0.85 kg, are fastened to each other, and to a rotation axis at O, by two thin rods, each with length d = 5.6 cm and mass M = I.2 kg. The combination...
-
Explain the nature and roles of accounting and finance.
-
Starbucks is hoping to make use of its excess restaurant capacity in the evenings by experimenting with selling beer and wine. It speculates that the only additional costs are hiring more of the same...
-
Have you or someone close to you every experienced stigmatization related to disability or other reason? If so, what type of stigma? What are (were) theindividual as well as public consequences? 2....
-
Suppose that an intermediary faces a certain number of buyers and sell- ers. The intermediary sets usage prices P, and P, to be paid, respectively, by sellers and buyers whenever there is an...
-
Chloroform is a reagent used often in Nuclear Magnetic Resonance Spectrometry. If the apparent mass weighed in air is 7.5270 g, what would be the absolute percentage error if the mass is not...
-
How do the principles of thermodynamics and transport phenomena govern the performance and efficiency of solid oxide fuel cells, particularly concerning electrode kinetics and gas diffusion processes...
-
1. Describe a situation that you encounter in your own life that can be repre- sented as a game of complete information 2. Describe a second, and different situation that you encounter in your own...
-
explain the role of microkinetic modeling in elucidating reaction mechanisms and designing catalysts with tailored activity and selectivity for sustainable chemical transformations ?
-
On January 1 , 2 0 2 0 , Swen paid $ 1 9 0 , 0 0 0 for $ 2 1 0 , 0 0 0 of the 8 % , 2 0 - year bonds of Penn Corporation, issued on January 1 , 2 0 1 6 , at par. The bonds are held as an investment....
-
Devon borrowed $ 7 , 1 0 0 and paid $ 9 0 0 in interest. The bank charged him a service charge of $ 1 6 . If Devon repaid the loan in 1 6 equal monthly payments, what is the APR? ( Round your answer...
-
1. Company uses target price. Refer the following information: Production volume $601,000 units per unit Market price $32 per unit Desired operating income 15% of total assets Total Assets...
-
A superior criticized a sales manager for selling high-revenue, low-profit items instead of lower-revenue but higher-profit items. The sales manager responded, My income is based on commissions that...
-
a. Briefly discuss how unrealized gains and losses arising from at fair value through profit or loss investments that are not designated as cash equivalents are reported on the statement of cash...
-
Maple Leaf Foods (MLF) is a Canadian manufacturer of meat and baked products that is listed on the Toronto Stock Exchange. On the morning of July 27, 2007, the company issued a press release with its...
-
Luca Merchandising Inc. (LMI) is a privately held import and export company located in Montreal considering going public in the next fiscal year. The company decided to purchase shares in two...
-
An automobile's suspension system determines the vehicle's response to inputs from uneven road surfaces. Figure 3.56 shows a drawing of a suspension system that includes a coil spring, a shock...
-
For a mass-spring-damper system under harmonic loading per unit mass \(F(t) / m=\cos \omega t \mathrm{ft} / \mathrm{s}^{2}\), solve for the response amplitude for the case where \(k=\) \(20...
-
For the system in Figure 3.57, the forcing per unit mass is \(F(t) / m=10 \sin 15 t \mathrm{ft} / \mathrm{s}^{2}\). Solve for the transient response, the steady-state response, and the constants of...
Study smarter with the SolutionInn App