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

Similar questions

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
b) Problem: Calculate the 7% tax on a purchase of $25. Solution: 10% of $25 is $2.50, so 5% is $1.25. 1% of $25 is 25 cents, so 2% is 50 cents. This means 7% is $1.25 plus 50 cents, which $1.75. ht Rotate Markup Seareh 7% $25 = 29/1 ol ebriogzTIO tont yems as WEI0 () erit bes yen 21 worle of 29lsnsbn balsdel ylhisn6 (anlog Al (atob c) Problem: What is 110% of 62? Solution: 100% of 62 is 62 and 10% of 62 is 6.2, so all together it's 68.2. 110% 62% D Messages OCT 26 MacBook Air చిక ి.
Three priceing options are available: Silver plan: $20/month for up to 200 Mb's of service plus $0.16 for each additional Mb of service. Gold plan: $50/month for up to 1000 Mb's of service plus $ 0.08 for each additional Mb of service. Platinum plan: $100/month for up to 3000 Mb's of service plus $0.04 for each additional Mb of service. If C is the monthly charge for x Mb's of service, express C as a function of x for each plan. For how many Mb's of service is the Silver Plan the bes pricing option?
Tabitha manufactures a product that sells very well. The capacity of her facility is 207,000 units per year. The fixed costs are $157,000 per year and the variable costs are $14 per unit. The product currently sells for $16. a. What total revenue is required for a net income of $482,000 per year? Round to the nearest cent b. If sales were at 55% of the capacity and the variable costs decreased by 25%, what would be the net income per year? Round to the nearest cent
Alan, Hannah, and Carolyn start a business agd invest $9000, $3000 and $6000 respectively. After a few months, if Carolyn decides to sell his shares to Alan and Bianca, he much would Alan and Blanca have to pay for Carolyn's shares if they want to maintain their initial investment ratio? a. Alan pays $1200; Hannah pays $4800 b. Alan pays $4800; Hannah pays $1200 C. Alan pays $1500; Hannah pays $4500 d. Alan pays $4500; Hannah pays $1500
4. The Metropolitan Company sells its latest product at a unit price of $2. Variable costs are estimated to be 40% of the total revenue, while fixed costs amount to $6,000 per month. How many units should the company sell per month to break even?