Homework Answers
Answer:
The profit will increase by $ 20,746.20.
Explanation:
| Revenue | $ 58,440.00 |
| Cost of goods sold | $ 31,265.40 |
| Administrative expenses | $ 6,428.40 |
| Net Income | $ 20,746.20 |
Answer 2:
The profit will reduce by $ 5,723.90
Explanation:
| Additional material & labor | $ 4,723.90 |
| Rental cost | $ 1,000.00 |
| Total | $ 5,723.90 |
Answer 3:
The profit will reduce by $ 36,651.
Calculation:
Loss of sale = (18 - 17.43 * 64.300)
= $ 36.651
In case of any doubt, please comment.
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Last year, X Company sold 64,900 units of its only product for
$18.00 each. Total costs were as follows:
Cost of goods sold
Variable
$425,095
Fixed
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Selling and administrative
Variable
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Fixed
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At the end of the year, a company offered to buy 4,170 units of the
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produce the additional units, and even though there would have been
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Last year, X Company sold 67,200 units of its only product for
$17.00 each. Total costs were as follows:
At the end of the year, a company offered to buy 4,780 units of
the product but only for $12.00 each. X Company had the capacity to
produce the additional units, and even though there would have been
no additional selling and administrative costs, it rejected the
offer.
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have...
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