esc ! 1 Q A L ← Z Direct materials Direct labor Variable overhead Fixed overhead 2 An outside supplier has offered to sell Concord the subcomponent for $2.50 a unit. No fixed costs are avoidable. If Concord accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be O $(5650). O $5650. O $12850. O $(3600). Save for Later W S #3 $9000 X 13500 13000 19800 Q E D $ 4 R G Search or type URL FL % 5 T MacBook Pro C V < 60 G Y B & 7 H R U * Attempts: 0 of 1 used 8 N J O ( 1 9 K M Submit Answer ** ) O 0 V ► 49 I P дв CO

esc ! 1 Q A L ← Z Direct materials Direct labor Variable overhead Fixed overhead 2 An outside supplier has offered to sell Concord the subcomponent for $2.50 a unit. No fixed costs are avoidable. If Concord accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be O $(5650). O $5650. O $12850. O $(3600). Save for Later W S #3 $9000 X 13500 13000 19800 Q E D $ 4 R G Search or type URL FL % 5 T MacBook Pro C V < 60 G Y B & 7 H R U * Attempts: 0 of 1 used 8 N J O ( 1 9 K M Submit Answer ** ) O 0 V ► 49 I P дв CO

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Product-Profitability Analysis; Scarce Resources Creighton Corporation produces a varietyof consumer electronic products. Unit selling prices and costs for three models of one of its productlines are as follows:[LO 11-7]No Frills Standard Options SuperSelling price $40 $70 $86Direct materials 10 14 16Direct labor (@ $20/hour) 10 20 30Variable overhead 3 6 9Fixed overhead 3 6 6Variable overhead is charged to products on the basis of direct labor dollars; fixed overhead isallocated to products on the basis of machine hours.Required6. How can the optimum product mix be determined when there are more than two products and one ormore constraints?
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ageNOWv2 | Online teachin X + m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A F Variable costs as a percentage of sales for Lemon Inc. are 72%, current sales are $610,000. and fixed costs are $191,000. How much will income from operations change if sales increase by $48,900? Oa. $13,692 decrease Ob. $13,692 increase Oc. $35,208 decrease. Od. $35,208 increase D Q 10+
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Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Cost per Unit $ 32.50 13.00 19.50 26.00 $91.00 An outside supplier has offered to provide Cotton with the 10,000 subcomponents at an $84.50 per-unit price. No portion of fixed overhead is avoidable. If Cotton accepts the outside offer, what will be the effect on short-term profits?
QUESTION 7 Quiet Corp. currently makes 2000 subcomponents a year in one of its factories. The unit costs to produce are: Description Per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $4 4 2 IMI An outside supplier has offered to provide Quiet Corp. with the 2000 subcomponents at a $17 per unit price. Fixed overhead is not avoidable. If Quiet Corp. decides to buy from the outside supplier, the impact to net income will be ? If positive, enter the number, if negative, place a-sign before your number
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