Determining manufacturing and net income
Course:- Accounting Basics
Reference No.:- EM13115329

Assignment Help
Assignment Help >> Accounting Basics

The Adler Company manufactures a product with a unit variable cost of $50 and a unit sales price of $88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $70 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

a. Income would decrease by $4,000

b. Income would increase by $4,000

c. Income would increase by $70,000

d. Income would increase by $20,000

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
You have been commissioned by the Chief Executive Officer (CEO) of your organisation (or one with which you are familiar) to examine and report on the role of the HR functio
Comparative balance sheets for Bayshore Industries, Inc. as of December 31 year 2 and year 1 are presented below.Prepare the cash from operations section of the statement of c
Surveying the accounts payable records, a clerk in the controller's office noted that expenses appeared to rise significantly within a month of the close of the budget perio
Gabrielle Hunter, a waitress at the Hole-in-the-Wall restaurant, worked 42 hours this week and collected over $500 in tips. The restaurant uses the full tip credit against m
A review of the ledger of Greenberg Company at December 31, 2002, produces the following data pertaining to the preparation of annual adjusting entries.
actual case study where you will relate the concepts of IFRS and international accounting issues, including transfer pricing and taxation, corporate governance, and consolid
Createa chart detailing the three different forms of business organizations (proprietorships, partnerships, and corporations). Also include key users of financial informatio
Perform an Internet search using the term, flexible budgets, and locate an article (less than one year old) from the results of your search. After reading the article, write