How would operating income be affected

Assignment Help Managerial Accounting
Reference no: EM132510191

Question1 : If a special sales order is accepted for 3,000 seats at a price of $300 per unit, and fixed costs increase by $10,000, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

A. Decrease by $80,000

B. Increase by $230,000

C. Increase by $90,000

D. Increase by $80,000

Reference no: EM132510191

Reviews

Write a Review

 

Managerial Accounting Questions & Answers

  Find require sales in units to achieve target net income

Compute the required sales in units to achieve its target net income. Sunland Corporation has fixed costs of $828,290. It has a unit selling price of $6.10.

  Advertising budget

Suppose you're a field marketing professional, responsible for marketing your company's products in South Florida region of medium-size corporation. One day you receive the CD from your corporate marketing group (based in Detroit, Michigan) which ..

  Calculate the difference between the two fares

Calculate the difference between the two fares for each airline. Analyze whether the costs are variable or fixed in relation to an individual passenger

  What is the tax savings from depreciation

What subjective factors would affect the investment decision and compute the after-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment

  Tajiri corporation uses customers served as its measure

Tajiri Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of May:

  The diverse measurement techniques developed for different

the diverse measurement techniques developed for different types of assets suggest that standard setters are confused

  Identify any potential outlier data

Use the scatterplot graph provided, total cost against the activity: Identify any potential outlier data? Discuss any patterns that you observe?

  Consulting fees are credited to revenue when received

Consulting fees are credited to revenue when received. At June 30, consulting fees of $1,100 are unearned.

  What is the incremental cost associated

What is the incremental cost associated with producing an extra 50,000 jars of salsa?

  What is the photocopier? division capital? turnover

Selected financial data for the Photocopies Division of? Elizabeth's Business Machines is as? follows:

  Why did knut need to introduce the new performance measures

Why did Knut need to introduce these new performance measures? That is, why does he need to use these performance measures over and above the operating profit numbers for the period?

  Determine the cash outflow for the purchase of land during

a. Determine the cash outflow for the purchase of land during 2013.

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!

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