Calculate amount by which Company net income increase

Assignment Help Accounting Basics
Reference no: EM132834535

Question - Ag2-y6R Company has just obtained a request for o special order of 10,000 units to be shipped of the end of the month at a selling price of $19 each. The company has a production capacity of 90,000 units per month. At present, the company is selling 83,000 units per month through regular channels at a selling price of $22 each. For these regular sales, the cost for one unit is:

Variable production costs $8.40

Fixed production costs $3.30

Variable selling expenses $2.70

Ag2-y6R Company will not incur any selling expenses on the special order units. However, the special order units will require on additional shipping cost of $0.30 per unit.

Required - Calculate the amount by which Ag2-y6R Company's net income will increase if they accept the special order.

Reference no: EM132834535

Questions Cloud

Explain why correlation examples are positive and negative : Explain why your correlation examples are positive and negative. Review a peer example, and discuss areas of difference.
What was the purpose of higher education colonial america : After reviewing the primary source reading "First Fruits" and the video on colonial colleges, write a one-page (minimum of 300 words) reflection paper about.
Identify the penalties for the breaches of legislation : Research and identify the penalties for the following breaches of legislation. Note the maximum penalty and the section number of the act.
Explain the dimensions of information systems : Q1: Explain the dimensions of information systems Q2: Explain how information systems impact organizations and business firms
Calculate amount by which Company net income increase : The company has a production capacity of 90,000 units per month. Calculate the amount by which Ag2-y6R Company's net income will increase
Explain how italy and sweden can gain from trade : You are required to conjecture (speculate) the circumstances in these two countries (Italy and Sweden) under autarky (when there is no trade)
The six signature traits of inclusive leadership : "The Six Signature Traits of Inclusive Leadership." Note how each of the traits and subcomponents is defined, and how the thoughts and actions of leaders
Explain importance of using automations in business : 1. Explain the importance of using automations in the business? 2. What are the advantages and disadvantages of automation in the business?
What are the different types of online revenue model : What are the different types of online revenue models for e-commerce sites to achieve competitive advantage?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How does each type of fraud impact the organization

How does each type of fraud impact the organization, comparing the impacts of fraudulent financial statements

  Indicate the internal control principle

Indicate the internal control principle that was violated for each finding below. The internal control principles include establishment of responsibility

  Sucher company uses a standard cost system in which

sucher company uses a standard cost system in which manufacturing overhead costs are applied to units of product on the

  Explain what are three new types of merchandising accounts

What is the difference between a service and a merchandising business? Provide an example of each. What are three new types of merchandising accounts?

  What is the future value compounded interest

Jhon Finley wishes to become a millionaire. His money market fund has a balance of $142,673 and has a guaranteed interest rate

  Assume the equipment isacquired using the financing offered

careful electric company is planning to purchase equipment forone of its generating plants. dealer a has offered to

  Evaluate two major differences between gaap and ifrs

Evaluate two (2) major differences between GAAP and IFRS with respect to the statement of cash flows

  The fica taxes for employee

The biweekly taxable wages for the employees of Rite-Shop follow. Compute the FICA taxes for each employee and the employer's FICA taxes.

  What are some causes of inventory shrinkage

Assume that Bernard Office Equipment in Question 1 experienced an abnormal inventory shrinkage of $315,750. It has decided to record the abnormal inventory.

  What adjusting entry does Hawk make to record Expense

What adjusting entry does Hawk make to record 2019 Bad Debt Expense? What is "Accounts Receivable, net" on Hawk's December 31, 2019 Balance Sheet

  Prepare journal entries at the end of 2010

Prepare journal entries at the end of 2010 to record on the books of Phillips Stores, Inc. the summarized data above.

  What is the present value of the six receipts

Swifty Corporation will receive $31000 today (January 1, 2020), What is the present value of the six $31000 receipts, assuming a 11% interest rate

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd