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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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2 years ago
Bell’s Shop can make 1000 units of a necessary component with the following costs: Direct Materials $24000 Direct Labor 6000 Var
Korolek [52]

Answer:

8,000= fixed overhead

Explanation:

Giving the following information:

Bell’s Shop can make 1000 units of a necessary component with the following costs:

Direct Materials $24000

Direct Labor 6000

Variable Overhead 3000

Fixed Overhead ?

The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally.

Buy= 41,000/1,000= $41

Total Unitary cost= 24,000 + 6,000 + 3,000 + fixed overhead

41,000= 33,000 + fixed overhead

8,000= fixed overhead

3 0
2 years ago
What is the correct strategy that Alejandra must use to deliver a negative message?
Serga [27]

Answer:

Apologize and come up with a new plan. Of course, you need to apologize, if you don't then that becomes a problem. (especially if they are a Karen.) After apologizing start to explain what you are going to do about it. For Example  Refunds, Store Credit, Replacement, Etc. To start off. Then fix the problem. Also, tell them that you are going to do so and so to fix it. Like creating anew toy or whatnot.  Hope this helps!  

6 0
2 years ago
Which of the following scenarios best illustrates bundling? Cumulus Media Inc. sells its cloud computing network by having custo
ddd [48]

Answer:

The scenario that best illustrate BUNDLING is option B which state that:

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BUNDLING occur when a company or an organisation combine different product together as a package and than sell those product at a discounted amount or lower price instead of charging their customers to buy those product separately

For example, a customers may prefer iPhone 6 than iPhone 5 Instead of the company to sell iPhone 6 for $500 dollars and iPhone 5 for $400 dollars each, the company will then bundles or combined the two product and sells them at a discounted price or amount of $300.

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2 years ago
kane manages a used book store he reads a report advising him to stock more encyclopedias. however the report is mistaken custom
Dafna1 [17]

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As mentioned below, if the consumers do not buy the encyclopedias, then they will lose money due to purchasing items that consumers do not want. It's necessary to not only look over reports, but understand the reports to make sure that a business is not overstocking in items that consumers are not actually in demand for. Consumers will purchase items they have a demand for and based on the reports, you can understand the items they are in demand for versus the items they will not be purchasing.

5 0
2 years ago
Read 2 more answers
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