Ringside Products normally sels boxing gloves for $85 a pair Ringside just received a special order to sell 1,500 pairs at a price of $50 a pair. To purchase, store, and ship the gloves, it costs $43 in variable costs and $12 in foed costs. Fixed costs will not be affected whether we accept the special order or not. Assuming Ringside has enough excess gloves on hand to fill the special order, it should Multiple Choice 0 reject the offer since income wil decrease by $7.500 O accept the offer since income will increase by $10,500 0 reject the offer since income will decrease by $10,500 C) accept the offer since income will increase by $7.500 The Crystal Chemical Company produces two chemicals whose production begins with a joint process. Additional data for the chemicals are presented below. Unit selling price at split-off Unit selling price after further processing Additional costs to process beyond split-off Chemical $38 per gallon $65 per gallon $20 per gallon Chemical Z $15 per gallon $18 per gallon $20 per gallon What should you do? Chemical Chemical Z 1 0 O Sel at spit off Process further 0 O Ses at split of Sell at split 0 Process further Sell at 0 Process further Process further Hernandez Corporation is analyzing a capital expenditure that will involve a cash outlay of $104,904. Estimated cash flows are expected to be $36,000 annually for four years. Estimated annual net income is expected to be $1,049,040. The present value factors for an annuity of $1 for 4 years at various interest rates are: 10 128 14% 2914 3170 3.037 | 2855 The internal rate of return (IRR) for this investment is: At the high level of activity in November, 7000 machine hours were run and power costs were $8,000. In April, a month of low activity, 2000 machine hours were run and power costs amounted to $4,000. Using the high-low method, the estimated fixed cost element of power costs is Multiple Choice | o $5600 o $4,000. o $2,. o 58poo. The following credit sales are budgeted by Roswell Company January S51,000 February 75,000 105,000 April 90,000 March The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of Aprilis Multiple Choice o , o 30.poo. o saa, 200 o O s92.5