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Answer the 4 following questions: View Policies Current Attempt in Progress It costs Marigold Corp. $13 of variable and $5 of fixed costs to produce
Answer the 4 following questions:
View Policies Current Attempt in Progress It costs Marigold Corp. $13 of variable and $5 of fixed costs to produce one scale which normally sells for $40. A foreign wholesaler offers to purchase 3500 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Marigold has sufficient unused capacity to produce the 3500 scales. If the special order is accepted, what will be the effect on net income? O $52500 increase O $24500 decrease O $3500 decrease O $3500 increase Crane Company incurred the following costs for 70000 units: Variable costs $420000 Fixed costs 380000 Crane has received a special order from a foreign company for 3000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6000 for shipping. If Crane wants to break even on the order, what should the unit sales price be? O $11.43 O $13.43 O $6.00 O $8.00 Wildhorse Company's unit costs based on 100000 units are: Variable costs $70 Fixed costs 40 Wildhorse's normal unit selling price is $180. A special order from Astra International, an Indonesian firm, has been received for 4100 units at $140 per unit. Wildhorse would incur an additional variable cost of $3 per unit in shipping costs on the special order. The company has available production productive capacity to accept the order. The incremental profit (loss) from accepting the order would be $(164000). O $(110700). O $274700. O $287000. Cullumber Company's unit manufacturing costs are: Variable costs $60 Fixed costs 35 A special order for 1600 units has been received from Somair, a company in Niger. Cullumber has available productive capacity to fill the order. The unit price requested by Somair is $95. Cullumber's normal unit selling price is $110. If the order is accepted, unit variable costs will increase by $4 for additional labeling and freight costs. If the special order is accepted, Cullumber's incremental profit (loss) will be $49600. $(6400) $80000. O $(24000)Step by Step Solution
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