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D. Decrease by $23,650 E. none 30 Two months ago, Air-tite Corporation purchased 5,000 pounds of Hydrol, paying $17,000. The demand for this product has
D. Decrease by $23,650
E. none
30 Two months ago, Air-tite Corporation purchased 5,000 pounds of Hydrol, paying $17,000. The demand for this product has been very strong since the acquisition, with the market price jumping to $4.15 per pound. (Alr-tite can buy or sell Hydrol at this price.) The company recently received a special-order inquiry, one that would require the use of 4,100 pounds of Hydrol. Which of the following is (are) relevant in deciding whether to accept the special order? Sloped Multiple Choice Print The 900-pound remaining Inventory of Hydrol O The 54,15 market price O The $3.40 purchase price O 5.000 pounds of Hydrol Two or more of the factors are relevant. 29 Allison is contemplating a job offer with an advertising agency where she will make $77,000 in her first year of employment Alternatively, Allison can begin to work in her father's business where she will earn an annual salary of $61,000. If Allison decides to work with her father, the opportunity cost would be: Print Multiple Choice O $0 $61,000 $77,000 $138,000 omrelevant in deciding which Job offer to accept. Elkhom, Inc., which has excess capacity, received a special order for 4,300 units at a price of $16 per unit. Currently, production and sales are anticipated to be 12,000 units without considering the special order. Budget Information for the current year follows. Sales Less: Cost of Goods Sold Gross Margin $ 252,000 180,000 $ 72,000 Cost of goods sold includes $54,000 of fixed manufacturing cost. If the special order is accepted, the company's income will: Multiple Choice Increase by $4,300. decrease by $4,300. increase by $23.650 Step by Step Solution
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