It costs Sheridan Company $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $58. A buyer in Mexico offers to purchase 3000 units at $34 each. Sheridan Company has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?

Increase $102000

Increase $18000

Increase $18000

Decrease $18000

Bramble Corp. produces face cream. Each bottle of face cream costs $13 to produce and can be sold for $18. The bottles can be sold as is, or processed further into sunscreen with an additional cost of $17 each. Bramble Corp. could sell the sunscreen bottles for $26 each.

Face cream must not be processed further because costs increase more than revenue.

Face cream must be processed further because its profit is $9 each.

Face cream must not be processed further because it decreases profit by $17 each.

3.

Bramble Corp.budgeted manufacturing costs for 35000 tons of steel are:

Fixed manufacturing costs	$50000 per month
Variable manufacturing costs	$12 per ton of steel

Brambleproduced 30000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?

Face cream must be processed further because it increases profit by $5 each.

$360000

$410000

$405000

$470000