It costs Lannon Fields $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. A buyer in Mexico offers to purchase 3,000 units at $36 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? a. Decrease $12,000 b. Increase $12,000 c. Increase $108,000 d. Increase $24,000

It costs Lannon Fields $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. A buyer in Mexico offers to purchase 3,000 units at $36 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? a. Decrease $12,000 b. Increase $12,000 c. Increase $108,000 d. Increase $24,000

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Related questions

Q: A manufacturer of calculators has a monthly fixed cost of $500 and a processing cost of $17 for each…

A: Profit is equal to difference of selling price and manufacturing cost.

Q: 5. An electronics store can sell 30 ipods per week when the ipods are priced at $290. For each…

A: Cost of ipod to the store is $110 each.

Q: A news stand sells local fashion magazines. The cost to purchase the magazines is the list price of…

A: As per the question, we are analyzing a newsstand's weekly profit based on the number of fashion…

Q: 1. Jordan charges $20 an hour for tutoring. He currently tutors 6 hours a week. He know he will be…

Q: Fred and Winnie O'Callahan have put themselves on a very strict budget. Their goal at the end of 23…

Q: Compute the total cost per year of the following pair of expenses. Then complete the sentence: On an…

Q: 3. Suppose an amount of money is invested at 8% per year. An additional amount of money equal to…

Q: Ron Company has the following commission schedule: Commission rate Sales 2 % Up to…

Q: employee who lives 24 miles from her place of work can either drive or take the subway. Use the…

A: We have to calculate the cost saving by travelling by subway.

Q: suppose it costs $52,000 per year to live in city A. It costs $90,000 to live in city B. In which…

A: We have to find correct answer.

Q: 5. A financial adviser can invest up to $90,000 in funds to invest in stocks, corporate bonds, and…

A: Let x, y and z denote amount invested in stocks, corporate bonds and govt bonds respectively. Thus,…

Q: A publisher for a promising new novel figures fixed costs at $46,157 and variable costs at $2.97 for…

Q: Jim and Alice Lange, employees at Walmart, have put themselves on a strict budget. Their goal at…

Q: A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy…

Q: 2. When you start a new job selling electronics, you have two salary options: • Option A: A base pay…

A: Salary

Q: Compute the total cost per year of the following pair of expenses. Then complete the sentence: On an…

Q: 2. A lady owns a boutique that sells jewelry made by her husband and other local artists. She is…

A: Given, Privious cost price is $75 per ft2 for retail and $30ft2 cost indexes now are 140 fro retail…

Q: Night Shades Inc. (NSI) manufactures biotech sunglasses. These sunglasses sell for $150 each, and…

A: Given: The selling price of each sunglasses is $150. The cost to produce each sunglass is $70. The…

Question

100%

It costs Lannon Fields $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. A buyer in Mexico offers to purchase 3,000 units at $36 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?

a.
Decrease $12,000

b.
Increase $12,000

c.
Increase $108,000

d.
Increase $24,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

(I) the amount of canvas needed to cover this Tempo shelter. Note that thisShelter contains five canvases, two canvases for the walls, two canvases for the roof and one for the back wall. There's no canvas on the front of the shelter.(ii) the company's net profit for 10 identical Tempo shelter facilities.Please note that the canvas sells for $ 10.95 / m2 and we can sew it andcut it as we wish. The hourly salary of employees of " allto roof " is $ 17 / h and an employee works for six hours in order to sewshelter. The price charged to customers for a Tempo shelter is $1,600. Choices of awnsersa) i. 20,45 m2 ii. 12 740,70 $b) i. 16,20 m2 ii. 13 658, 70 $c) i. 15,72 m2 ii. 1 274,07 $d) i. 12,35 m2 ii. 13 206, 10 $
You have $500,000 in an IRA (Individual Retirement Account) at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.5% annually and Fund B pays 7.5% annually. How should you divide your money between Fund A and Fund B to produce an annual interest income of $28,000? You should invest $ in Fund A and $ in Fund B.
A newly opened bed-and-breakfast projects the following: Monthly fixed costs Variable cost per occupied room per night $60 Revenue per occupied room per night $10000 $165 How many rooms would have to be occupied per month in order to break even?
The small boatyard WhiteKayaks are building epoxy kayaks, last year they built 156. Each of those requires 12 kg of epoxy, purchased in 6 kg barrels at €170 each, freight cost is €18 per shipment plus €1 per kg. The annual carrying cost is estimated to 20% of the value. a. If the purchase policy is to buy 20 barrels each time, how much time can be spent on administrative work if the order quantity should be considered optimal. The boat-builder costs €25/h. b. If time spent is 30 minutes, what would be the optimal order quantity?
A book publisher has fixed costs of $360,000 and variable costs per book of $9.00. The book sells $23.00 per copy. How many books must be sold to break even? If the fixed cost increased, would the new break even point he higher or lower? If the variable cost per unit decreased, would the new break even point he higher or lower?
4. A local restaurant has the best meals in town. The average variable cost per meal is $22.74 and the desserts are $5.24. Only half of the patrons order desserts. The restaurant has fixed operating costs of $112 714 per month. They sell the meals and desserts for four times their average variable cost per meal. They company wants to make a monthly profit of $75 000, How many meals must they sell?
A company uses 5000 items per annum which has a price of $2 each. The ordering costs are $150 per order and holding costs are $1.50 per item per annum. The company is offered a 5% discount (discounted price is $1.90) for orders of 5000 and over. Order cost and holding cost remain at $150 per order and $1.50 respectively. Assuming that the company orders 5000 items per order, calculate the number of orders per annum, average stock, annual stock holding cost, annual order cost, annual inventory cost and the total annual cost of items and inventory.
good/service Activity 1: Solve Me! Direction: Read the following problems carefully. Show a complete solution on a separate sheet of paper. 1. Albert receives 30% commission on the appliances he sells. If he sells a TV for P12,000, a refrigerator for 15,000, and a heater for P1600, how much does Albert make in commission? 2. Juan makes money by commission rates. He gets 15% of everything he sells. If Juan sold P230.000 worth of items this month, what is his salary for the month? 3. Roy works at a Gadget Store. For every cash purchase of a laptop, he gets 8.1%commission. In a particular month, he was able to sell 10 laptops costing P24,000 cach. How much was his total commission for such cash sales? 4. Mark makes P12,000 a month plus some money by commission rates. He gets 8% of everything he sells. If Mark sold #60,000 worth of items this month, what is his salary for the month? 5. Carlo sold his house for #8,000,000. The real-estate agent got a 5% commission from the sales. From his…
A local convenience store sells a large variety of snack foods. If their budget for the month includes sales of $338,000, total variable costs of $202,800, and fixed costs of $24,500, how much must their sales be to break even?
A watch manufacturer incurs a variable cost of $10 per watch and fixed costs of $500,000. To earn a 20 percent markup on selling price, the manufacturer would charge _____ for each of the 50,000 watches it expects to sell.
In a manufacturing company, the fixed cost is 8,640. The cost of a labour per unit is RO 12, the cost of materials is RO 3 per unit and the cost of manufacturing overheads is RO 6 per unit. What is the total cost if the company produces 800 units? a. RO 8640 b. RO 25,440 c. RO 9600 d. RO 16,800
About 1/3 of Samuel’s paycheck goes to housing, 1/6 goes to utility bills, 1/8 goes for his car, and 1/5 goes for food. How much of his paycheck is left for entertainment?