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A order has been received from an overseas customer for 2,000 units to be delivered this month at a special discounted price of $41.60 per
A order has been received from an overseas customer for 2,000 units to be delivered this month at a special discounted price of $41.60 per unit. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed manufacturing overhead or selling and administrative costs. The variable selling, and administrative expense would be S0.10 less per unit on this order than on normal sales. JNJ would also have to purchase a special machine at a cost of $1,500 that would be of no use to the company for other projects. Direct labor is a variable cost in this company. By how much would this special-order increase (decrease) the company's net operating income for the month? A. $(9,900) B. $(20,300) C. $500 D. $23,700 University of Oklahoma purchased a piece of equipment with the following expected results: Useful life7 years Yearly net cash inflow$50,000 So 20% 16% Salvage value. Internal rate of return.... The initial cost of the equipment was (round to the nearest whole dollar) A. $300,100 B. Cannot be determined C. $180,230 D. $190,600
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