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Ahngram Corp. has 1.000 carton of oranges that cost $32 per carton in direct costs and $22.00 per carton in indirect costs and sold for
Ahngram Corp. has 1.000 carton of oranges that cost $32 per carton in direct costs and $22.00 per carton in indirect costs and sold for $52 per carton. The oranges can be processed further into orange juice at an additional cost of $18.00 and sold at a price of $90. The incremental income (loss) from processing the oranges into orange juice would be: Multiple Choice $62,000. $69,000. $72.000 $61,000 ($69.000) Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 7,620 units. Additional information is as follows: Variable product cost per unit Variable administrative cost per unit Total fixed overhead Total fixed administrative $ 29 37 47,700 28,500 Using the total cost method what price should Galla charge? Multiple Choice $78.00 $104.00 $110.00 $95.00 $90.00 The following relates to a proposed equipment purchase: Cost Salvage value Estimated useful life Annual net cash flows Depreciation method $148,000 $ 6,000 4 years $ 48,100 Straight-line Ignoring income taxes, the annual net income amount used to calculate the accounting rate of return is: Multiple Choice $83,600 $12,600 $14.100 $48,100 $46.600
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