Homework Help is Here – Start Your Trial Now!
Business
Accounting
It costs Waterway Industries $13 of variable and $5 of fixed costs to produce one scale which normally sells for $46. A foreign wholesaler offers to purchase 3300 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Waterway has sufficient unused capacity to produce the 3300 scales. If the special order is accepted, what will be the effect on net income? O $3300 increase O $3300 decrease O $42900 decrease O $49500 increase

It costs Waterway Industries $13 of variable and $5 of fixed costs to produce one scale which normally sells for $46. A foreign wholesaler offers to purchase 3300 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Waterway has sufficient unused capacity to produce the 3300 scales. If the special order is accepted, what will be the effect on net income? O $3300 increase O $3300 decrease O $42900 decrease O $49500 increase

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

can you please help me figure this out

### Current Attempt in Progress **Scenario:** Waterway Industries incurs a cost of $13 in variable costs and $5 in fixed costs to produce one scale, which is typically sold at a retail price of $46. A foreign wholesaler has proposed a special order to purchase 3,300 scales at a price of $15 each. Additionally, Garner (the company handling the order) would face special shipping costs amounting to $1 per scale should they agree to fulfill this order. Waterway Industries has enough unused production capacity to meet the 3,300 scale order. **Question:** If Waterway Industries accepts this special order, how would it impact their net income? **Options:** 1. $3,300 increase 2. $3,300 decrease 3. $42,900 decrease 4. $49,500 increase **Actions:** - Use the eTextbook and Media resources for additional information. - You can save the current progress for later review. - This is the first of three allowed attempts to submit your answer. **Submit your Answer:** Use the button provided to submit your response.
Transcribed Image Text:### Current Attempt in Progress **Scenario:** Waterway Industries incurs a cost of $13 in variable costs and $5 in fixed costs to produce one scale, which is typically sold at a retail price of $46. A foreign wholesaler has proposed a special order to purchase 3,300 scales at a price of $15 each. Additionally, Garner (the company handling the order) would face special shipping costs amounting to $1 per scale should they agree to fulfill this order. Waterway Industries has enough unused production capacity to meet the 3,300 scale order. **Question:** If Waterway Industries accepts this special order, how would it impact their net income? **Options:** 1. $3,300 increase 2. $3,300 decrease 3. $42,900 decrease 4. $49,500 increase **Actions:** - Use the eTextbook and Media resources for additional information. - You can save the current progress for later review. - This is the first of three allowed attempts to submit your answer. **Submit your Answer:** Use the button provided to submit your response.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS