Nelson Inc. can produce 100 units of a component part with the following costs:

Direct Materials $130,000

Direct Labor 103,000

Variable Overhead 82,000

Fixed Overhead 62,000

If Nelson Inc. can purchase the units externally for $300,000, by what amount will its total costs change?

Brigg Enterprises produces miniature parasols. Each parasol consists of $1.20 of variable costs and $0.90 of fixed costs and sells for $4.50. A French wholesaler offers to buy 8,000 units at $1.40 each (which Brigg has the capacity to produce). Brigg will incur extra shipping costs of $0.12 per parasol.

Instructions: Determine the incremental income or loss that Brigg Enterprises would realize by accepting the special order, assuming that fixed costs remain unchanged.

Phillippe Inc. manufactures A and B from a joint process. Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $20,000 and then sold for $25 per pound. If Phillippe decides to process A beyond the split-off point, operating income will:

The current period statement of cash flows includes the following:

Cash balance at the beginning of the period $310,000

Cash provided by operating activities 185,000

Cash used in investing activities 43,000

Cash used in financing activities 97,000

What is the cash balance at the end of the period?