User Account

All Pages

By how much will operating income change

Assignment Help Accounting Basics
Reference no: EM132100435

Question - Tom Industries has a plant capacity of 70,000 units and current production is 55,000 units. At this production volume the variable cost per unit is $30, and the fixed cost per unit is $4.10 per unit. The normal selling price of Tom's product is $45 per unit. Tom Industries has been asked by Sadie, Inc., to fill a special order for 10,000 units of the product at a special sales price of $25 each. Sadie, Inc. will market the units in a foreign country under its own brand name; the special order is not expected to have any effect on Tom's regular sales. What impact will accepting the special order have on Tom's operating income?

A. Accepting the special order will not impact Tom's operating income.

B. Accepting the special order will decrease Tom's operating income.

C. Accepting the special order will increase Tom's operating income. By how much will operating income change if the special order is accepted?

Reference no: EM132100435

Questions Cloud

Appropriate business structure early in the process : Is it important to select an appropriate business structure early in the process? Why or why not?
What should its target unit variable cost be : If Base Line is unable to reduce its total fixed costs below $150,000, what should its target unit variable cost be
How college students manage their school work : How college students manage their school work, leisure time, and employment. Introduce the proposal, telling the reader its purpose and contents.
When communicating part to whole relationship : When communicating part-to-whole relationship. When there are 5 or more categories that are to be compared.
By how much will operating income change : Accepting the special order will increase Tom's operating income. By how much will operating income change if the special order is accepted
Skilled facilitator approach be utilized in other processes : Can the skilled facilitator approach be utilized in other processes, such as strategic planning, process improvement,
What is the significant of the problem : Answer the following questions and write a paper (3 pages) about the problem of lack of knowledge regarding the differences of effect between first-in-class.
What will be the change in operating income : Current production and sales are 10,000 pairs per month at a selling price of $15 each. What will be the change in operating income
Goal to propose for a nursing home : What would be a strategic goal to propose for a nursing home that would enable it to be profitable, What is a rationale for formulating this strategy?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd