It costs Lannon Fields $21 of variable costs and $9 of allocated fixed costs to produce an industrial trash can that sells for $45. A buyer in Mexico offers to purchase 3,000 units at $27 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the special order offer have on net income? a. Decrease $9,000 b. Increase $9,000 c. Increase $81,000 d. Increase $18,000

Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)

Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000

can you please help me figure this out

A buyer from another country offered to purchase 2,000 units of product for $ 2.50 per unit. The normal selling price is $ 3.00 per unit. The company's regular variable costs of $ 1.50 per unit would not change, however overall fixed costs would increase by $ 500 if his order is accepted. How much will net income increase if this special order is accepted? Multiple Choice $ 2,500. $ 2,000. $1,500. $ 3,000. $ 1,850.

Sunland Enterprises produces giant stuffed bears. Each bear consists of $16 of variable costs and $13 of fixed costs and sells for $49. A wholesaler offers to buy 9,280 units at $18 each, for which Sunland has the capacity to produce. Sunland will incur extra shipping costs of $1 per bear. Determine the incremental income or loss that Sunland Enterprises would realize by accepting the special order. Incremental profit e Textbook and Media Save for Later $ Attempts: 0 of 1 used Submit Answer

A travel agency has a holiday package that sells for OMR 125. Fixed costs are OMR 80000; and at the present volume of 1000 customers, variable costs are OMR 25000 and profits are OMR 20000. (a) What is the break-even point volume? (b) Assuming that fixed costs remain constant, how many additional customers will be required for the agency to increase profit by OMR 1000? (Ans. (a) 800 units (b) 10 customers)

Sold?

Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit is $80 per unit, whereas the total fixed costs are $150,000. The company is considering the increase this year targeted profit to $250,000. What is the company's expected sales to reach its targeted profit? Select one: а. Expected sales would be $270,000 А. Expected sales would be $270,000 sales would be $270,000 b. Expected sales would be $900,000 c. Expected sales would be $720,000 d. Expected sales would be $450,000

K Allen's Ark sells 2,000 canoes per year at a sales price of $470 per unit. Allen's sells in a highly competitive market and uses target pricing. The company has calculated its target full product cost at $740,000 per year. Total variable costs are $250,000 per year and cannot be reduced. Assume all products produced are sold. What are the target fixed costs? OA. $940,000 OB. $200,000 OC. $250,000 OD. $490,000 GEZOS