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Sloan [31]
2 years ago
6

Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently p

roduces and sells 75,000 seats per year. The following information relates to current production of seats: Sale price per unit $420 Variable costs per unit: Manufacturing $260 Marketing and administrative $40 Total fixed costs: Manufacturing $770,000 Marketing and administrative $200,000 If a special sales order is accepted for 4000 seats at a price of $375 per unit, fixed costs remain unchanged, and no variable marketing and administrative costs will be incurred for this order, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)
Business
1 answer:
Lady_Fox [76]2 years ago
5 0

Answer:

$460,000 increment in the operating income

Explanation:

Production = 75000

Unit sales price = $420

Sales revenue                                          31,500,000

Cost of sales

Manufacturing (260*75000)                    19,500,000

Gross profit                                               12,000,000

Marketing and admin (40*75000)           3,000,000

Manufacturing                                           770000

Marketing * Admin                                     200000

Operating income                                     8030000

Revenue for special order = 375*4000 = 1,500,000

Manufacturing cost =4000*260                 1,040,000

Gross profit                                                      460,000

There will be an increment of $460,000 in the operating income.

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Determine whether the following statement is true or false, and explain your reasoning:
Triss [41]

Answer:

The statement is true

Explanation:

As a fact, I agree that with large sample sizes, even the small differences between the null value and the observed point estimate can be statistically significant.

To put it differently, any differences between the null value and the observed point estimate will be material and/or significant if the samples are large in shape and form.

It's also established that point estimate get more clearer and understandable, and the difference between the mean and the null value can be easily singled out if the sample size is bigger.

Suffix to say, however, while the difference may connote a statistical importance, the practical implication notwithstanding, will be looked and studied on a different set of rules and procedures, beyond the statistical relevance.

6 0
1 year ago
A On December 31, 2017, State Construction Inc. signs a contract with the state of West Virginia Department of Transportation to
larisa [96]

Answer:

2018: $78 million

2019: $468 million

2020: $234 million

Explanation:

Given that State Construction incurred costs as follows:

Year                         Cost

2018                         $60 million

2019                         $360 million

2020                        $180 million

Total cost = $60 million + $360 million + $180 million = $600 million

Percentage to total cost ratio is:

For 2018 = $60 million / $600 million = 0.1,

For 2019 = $360 million / $600 million = 0.6,

For 2020 = $180 million / $600 million = 0.3.

Revenue = Percentage to total cost ratio × Contract price.

Contract price = $780 million

For 2018, Revenue = 0.1 × $780 million = $78 million

For 2019, Revenue = 0.6 × $780 million = $468 million

For 2020, Revenue = 0.3 × $780 million = $234 million

3 0
2 years ago
According to the National Association of Colleges and Employers, the average starting salary for Chemical
prisoha [69]

Answer:

A

Explanation:

When we have more students that enjoy studying history than enjoy studying math and science needed to get a degree in Chemical engineering , this will lead to a large no of history graduates in the labor market making the availability of chemical engineers graduate to be fewer and the demand for it higher.

This in effect cause a higher income for the chemical engineers as they become more of a scarce resources compared to history despite the students spending the same number of years to graduate in the college.

4 0
1 year ago
"researchers usually start their investigation by examining some of the rich variety of low-cost and readily available ________
aleksandrvk [35]

"researchers usually start their investigation by examining some of the rich variety of low-cost and readily available <u>"secondary" </u>data, then collect <u>"primary"</u> data if the needed data don't existing or are dated, inaccurate, incomplete or unreliable."


Primary data will be data that you gather particularly with the end goal of your examination venture. An advantage of primary data is that it is particularly custom fitted to your examination needs. A weakness is that it is costly to acquire.  

Secondary data alludes to information which is gathered by somebody who is somebody other than the client. Regular sources of secondary data for sociology incorporate censuses, data gathered by government divisions, hierarchical records and information that was initially gathered for other research purposes.

8 0
1 year ago
After assessing the results from a recent customer survey, top managers at Gibraltar Corporation are convinced their firm is doi
vivado [14]

Answer:

Empowerment approach is a type of approach which empowers people to do their tasks and this way they feel more confident working for the company.

Here in this question, I think that empowerment approach can be a good way to improve the responsiveness of the company because this way, it will create a sense of security in amongst the workers and they will feels confident to respond to customer needs by themselves, which in turn will ultimately lead to quick responding to the customer needs by the company. So yes, i think the answer is TRUE.

Hope this clear things up. Thank You.

4 0
1 year ago
Read 2 more answers
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