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Will leave Good review!! A Company has just obtained a request for a special order of 10,000 units to be shipped at the end of
Will leave Good review!! A Company has just obtained a request for a special order of 10,000 units to be shipped at the end of the month at a selling price of $33 each. The company has a production capacity of 80,000 units per month. At present, the company is selling 77,000 units per month through regular channels at a selling price of $34 each. For these regular sales, the cost for one unit is: variable production costs ....................... $7.40 fixed production costs .......................... $4.10 variable selling expenses ....................... $3.90 A Company will not incur any selling expenses on the special order units. However, the special order units will require an additional shipping cost of $0.60 per unit. Calculate the amount by which The Company's net income will increase if they accept the special order.
Another Company reported the following revenue and cost information for October: Sales revenue ............ $615,000 Variable costs ........... $221,620 Fixed costs .............. $256,170 This Company re-negotiated it lease beginning in November. The old lease required fixed payments of $35,000 per month. The new lease eliminated these payments and instead required a monthly payment equal to 5% of sales for the month. This Company reported sales revenue of $661,000 for the month of November. Calculate the net income reported by the Company in November.
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