Determine the effect on net income

Assignment Help Finance Basics
Reference no: EM1352663

It costs Garner company $12 of vaiable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2,000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Garner has sufficient unused capacity to produce the 2,000 scales. If the special order was accepted what will be the effect on net income?
a $4000 increase
b 4,0000 decrease
c 30,000 increase
d. 6,000 decrease

Reference no: EM1352663

Questions Cloud

What is the ratio of the speeds of the boats : While the positions of these balls are fixed, ground the ball X and then break the grounding. when X and Y remain in touch, remove Z. Then divide X and Y. What are the charges (if any) on each of the balls.
Importance to study nonverbal behavior : Why is it important to study nonverbal behavior? Do you think that individuals can control nonverbal behavior? Why or why not?
Elucidate the effect of capital formation by comparing : Elucidate the effect of capital formation by comparing the present times and ten year in the future for thtwo economic.
Java program ask user to enter 10-character telephone number : Write a Java program that asks the user to enter a 10-character telephone number in the format XXX-XXX-XXXX. The program should display the telephone number with any alphabetic characters
Determine the effect on net income : Garner company $12 of vaiable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2,000 scales at $15 per.
Consequences of the misjudgment : Explain the heuristics and/or biases at work, the consequences of the misjudgment, and how such misjudgments might be avoided.
Show developmental needs to interpersonal relations : Find two developmental needs related to interpersonal relations that you think are particularly relevant to the current President of the United States.
Why do pork also lamb have comapritively high price : Why do pork also lamb have comapritively high price elasticities of demand compared with the other foodstuffs in the table.
Write code for invoking method named sendtwo : Write the code for invoking a method named sendTwo. There are two arguments for this method: a double and an int.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the expected return on the mutual fund

A risk-free asset yielding 3.00 percent per year and a mutual fund consisting of 65% stocks and 35 percent bonds. The expected return on stocks is 12.00% per year and the expected return on bonds is 5.50 percent per year.

  Computing dividend pay-out ratio

Computing dividend pay-out ratio and the company forecasts this year's net income to be $600,000

  Explain what is his wealth in paper

Explain what is his wealth in paper and cash for each level of desired dividend income level

  Cross-border mergers and acquisitions

What special issues can arise in executing the cross-border acquisition and in ultimately meeting your objectives for the successful combination?

  Initial investment and problems in getting it funded

Find a new possible investment item for Lockheed Martin, what problems are you going to have in estimating the cash flow that might be emanating from the initial investment and problems in getting it funded?

  Explain decision making on the basis of the net present

Explain decision making On the basis of the net present value criterion and annual expenses of feeding and housing the baboon would be $4,000

  Merger waves

Looking for a different manner to Identify the key merger waves in U.S. history and describe factors that led to their occurrence.

  Determine future value

Solve for the future value given these assumptions

  Business ethics-moral and legal rights in workplace

Explain and defend your decision. Put yourself in the position of the employer in this case and defend your actions.

  Find the length of prestopinos cash conversion cycle

What is the length of Prestopino's cash conversion cycle and at a steady state in which Prestopino produces 1,500 batteries a day, what amount of working capital must it finance?

  Hedging continual economic exposure

Consider a real-world dilemma face by many firms that rely on exporting. Clark Financing, Inc. produces its products in its factory in Texas and exports most of the products to Mexico each month.

  Computation of equivalent annual cash flows

Computation of Equivalent Annual cash flows where Negative amount should be indicated by a minus sign

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