Question: Please show your work for question 22 It costs ABC Co. $14 of variable costs and S6 of allocated fixed costs to produce a widget
It costs ABC Co. $14 of variable costs and S6 of allocated fixed costs to produce a widget that sells for $30. A buyer in China offers to purchase 1, 500 units at SI8 each. ABC Co. has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? Increase by $6,000 ABC Co. has a new product going on the market next year. The following data are projections for production and sales: Variable costs $125,000 Fixed costs $225,000 ROI 20% Investment $1,000,000 Sales 100.000 units What is the target selling price per unit? $5.50 On January I, ABCt Company has a beginning cash balance of $6, 300. During the year, the company expects cash disbursements of $5100 and cash receipts of $4350. If ABCt requires an ending cash balance of $6,000, ABC Company must borrow $450 What is the starling point in preparing a master budget
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
