Business, 29.12.2021 22:00 cooper2017
Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. Sales (300,000 units) $4,500,000Costs and expenses Direct materials 600,000Direct labor 1,200,000Overhead 300,000Selling expenses 450,000Administrative expenses 771,000Total costs and expenses 3,321,000Net income $1,179,000The company has an opportunity to sell 30,000 additional units at $12 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 16% and (2) administrative expenses would increase by $129,000.Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit. Normal VolumeAdditional VolumeCombined TotalCosts and expenses: Total costs and expenses Incremental income (loss) from new business Should the company accept or reject the offer?The company should accept the offerThe company should reject the offer
Answers: 2
Business, 22.06.2019 08:40, alvalynnw
Mcdonald's fast-food restaurants have a well-designed training program for all new employees. each new employee is supposed to learn how to perform standardized tasks required to maintain mcdonald's service quality. due to labor shortages in some areas, new employees begin work as soon as they are hired and do not receive any off-the-job training. this nonconformity to standards creates
Answers: 2
Farrow Co. expects to sell 300,000 units of its product in the next period with the following result...
Mathematics, 13.04.2021 18:30
Mathematics, 13.04.2021 18:30
Mathematics, 13.04.2021 18:30