Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production which normally sells for OMR

image text in transcribed
image text in transcribed
It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production which normally sells for OMR 35. A foreign wholesaler offers to purchase 3,000 units at OMR 15 each. the company would incur special shipping costs of OMR 1 per unit if the order were accepted. Assuming that the company has the excess operating capacity to produce the 3,000 units. If the special order is accepted, what will be the effect on net income? Select one: O a. OMR 6,000 increase O b. None of the answers are correct c. OMR 6,000 decrease O d. OMR 45,000 increase O e. OMR 9,000 decrease Nizwa Co. has the following information available for December 2019: Unit selling price of a TV unit OMR 2,000 Unit variable costs OMR 500 Total fixed costs OMR 240,000 Units sold 400 The total net income is: Select one: O a. 240,000 O b. 242,000 O c. 210,000 O d. None of the answers are correct O e. 460,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Process Principles Practice And Cases

Authors: Stuart Manson, Iain Gray, Louise Crawford

6th Edition

1408081709, 978-1408081709

More Books

Students also viewed these Accounting questions