wce

pdf

School

Seneca College *

*We aren’t endorsed by this school

Course

440

Subject

Business

Date

Nov 24, 2024

Type

pdf

Pages

Uploaded by BrigadierWillpower1924

11/20/23, 7:56 AM Chapter 9 Quiz https://www.ameengage.com/mod/quiz/review.php?attempt=4684875&cmid=1260545&page=2 1/2 English (en) English (en) Français - Canada (fr_ca) Dashboard / My courses / [Seneca 09/2023] HTM440NHA - Nardi / CHAPTER 9 - Relevant Costs and Business Strategies / Chapter 9 Quiz Question 3 Incorrect Mark 0.00 out of 1.00 ABC Sandwiches sells sandwiches at $10 each, with variable costs of $6 per sandwich and allocated fixed costs of $2 per sandwich. The company believes it has the capacity to produce 2,000 more sandwiches than it produces currently. A prospective client has approached ABC with a one-time special order for 5,000 sandwiches, offering the company $8 per sandwich. The special order would not have any adverse effects on the company’s long-term profits. Should ABC accept this special order? Select one: a. Yes, as it would increase profits by $4,000. b. Yes, as it would increase profits by $10,000. c. No, as it would decrease profits by $2,000. d. No, as it would decrease profits by $3,000.  Your answer is incorrect. Explanation: The company can produce 2,000 more sandwiches than it does currently. Therefore, accepting the special order would result in an opportunity cost of $12,000 (3,000 sandwiches × ($10 − $6)) for the 3,000 regular-priced sandwiches it could have produced without the special order. However, the company would gain a contribution margin of $10,000 (5,000 sandwiches × ($8 − $6)) for the special order. Since the opportunity cost is $2,000 greater than the contribution margin gained, the order should not be accepted. The correct answer is: No, as it would decrease profits by $2,000.

11/20/23, 7:56 AM Chapter 9 Quiz https://www.ameengage.com/mod/quiz/review.php?attempt=4684875&cmid=1260545&page=2 2/2 Français (fr)

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

WelcomeHurlston_OjanieOnelly_U4T6a1.docx.docx

Fwd_ Nintzz 2nd jan.edited.docx

Jermiah Stockto1.docx

RESEARCH LOG.docx

OilSearchLimited_CIQReportLandscape.rtf

Week 3 Discussion Topic 1 - Civil Disobedience.doc

DSers.docx

22-Journal-SITHCCC020-chana masala.docx

Written Assignment - BUS 3301 - Unit 3.docx

INDIVIDUAL ASSIGNMENT.docx

Terrorism case study assignment F.docx

Group C.docx

Related Questions

| Login x Topic Week 5 Discussion - Live S: X Week 5 - Homework Chapter 5 WP Question 1 of 5 - Week 5-Home X + https://education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=c9ab9fc0-ab77-49d4-802e-df8fd8b6b1ad#/question/0 Strayer iCampus Strayer Technical Su... Microtek Support ework: Chapter 5 O Microsoft Office a Fire TV Devices e Question 1 of 5 View Policies Show Attempt History Current Attempt in Progress Information related to Monty Co. is presented below. 2.72/7 E : On April 5, purchased merchandise on account from Larkspur Company for $30,000, terms 2/10, net/30, FOB shipping point. On April 6, paid freight costs of $910 on merchandise purchased from Larkspur. 1. 2. 3. On April 7, purchased equipment on account for $30,100. 4. On April 8, returned $6,000 of merchandise to Larkspur Company. 5. On April 15, paid the amount due to Larkspur Company in full. (a) W Your answer is partially correct. 3:32 PM 2/5/2025

SEE MORE QUESTIONS

Recommended textbooks for you

BUSN 11 Introduction to Business Student Edition

Business

ISBN:9781337407137

Author:Kelly

Publisher:Cengage Learning

Essentials of Business Communication (MindTap Cou...

Business

ISBN:9781337386494

Author:Mary Ellen Guffey, Dana Loewy

Publisher:Cengage Learning

Accounting Information Systems (14th Edition)

Business

ISBN:9780134474021

Author:Marshall B. Romney, Paul J. Steinbart

Publisher:PEARSON

Introduction to Business

Business

ISBN:9781947172548

Author:OpenStax

Publisher:OpenStax College

International Business: Competing in the Global M...

Business

ISBN:9781259929441

Author:Charles W. L. Hill Dr, G. Tomas M. Hult

Publisher:McGraw-Hill Education

Bcom

Business

ISBN:9780357026595

Author:LEHMAN, Carol M.

Publisher:Cengage Learning,

SEE MORE TEXTBOOKS

Related Questions

| Login x Topic Week 5 Discussion - Live S: X Week 5 - Homework Chapter 5 WP Question 1 of 5 - Week 5-Home X + https://education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=c9ab9fc0-ab77-49d4-802e-df8fd8b6b1ad#/question/0 Strayer iCampus Strayer Technical Su... Microtek Support ework: Chapter 5 O Microsoft Office a Fire TV Devices e Question 1 of 5 View Policies Show Attempt History Current Attempt in Progress Information related to Monty Co. is presented below. 2.72/7 E : On April 5, purchased merchandise on account from Larkspur Company for $30,000, terms 2/10, net/30, FOB shipping point. On April 6, paid freight costs of $910 on merchandise purchased from Larkspur. 1. 2. 3. On April 7, purchased equipment on account for $30,100. 4. On April 8, returned $6,000 of merchandise to Larkspur Company. 5. On April 15, paid the amount due to Larkspur Company in full. (a) W Your answer is partially correct. 3:32 PM 2/5/2025

Recommended textbooks for you

BUSN 11 Introduction to Business Student Edition
Business
ISBN:9781337407137
Author:Kelly
Publisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...
Business
ISBN:9781337386494
Author:Mary Ellen Guffey, Dana Loewy
Publisher:Cengage Learning
Accounting Information Systems (14th Edition)
Business
ISBN:9780134474021
Author:Marshall B. Romney, Paul J. Steinbart
Publisher:PEARSON
Introduction to Business
Business
ISBN:9781947172548
Author:OpenStax
Publisher:OpenStax College
International Business: Competing in the Global M...
Business
ISBN:9781259929441
Author:Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher:McGraw-Hill Education
Bcom
Business
ISBN:9780357026595
Author:LEHMAN, Carol M.
Publisher:Cengage Learning,