Wade Company is operating at 75% of its manufacturing capacity of 140,000 product units per year. A customer has offered to buy an additional 20,000 units at $32 each and sell them outside the country so as not to compete with Wade. The following data are available: Costs at 750% capacity: Per Unit $12.00 $1.260,000 Total Direct materials Direct labor 945.000 9.00 1.575,000 $36,00 $3.780,000 Overhead (fixed and variable) Totals 15.00 In producing 20,000 additional units, fixed overhead costs would remain at their current level but incremental variable overhead costs of $6 per unit would be incurred. What is the effect on income if Wade accepts this order? Income will decrease by $4 per unit. Income will increase by $4 per unit. Income will increase by $5 per unit. Income will decrease by $5 per unit. Income will increase by $11 per unit.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Wade Company is operating at 75% of its manufacturing capacity of 140,000 product units per year. A customer has offered to buy an ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following statements about the Consumer Decision Process is false? a. In a successful purchase, every stage in the process has to happen. b. Sometimes consumers process a stage or stages subconsciously. c.
Answers (1)
An investor is considering buying a restaurant that has been in operation for a number of years. The restaurant has a highly regarded chef and many long-term kitchen and wait staff who work together smoothly.
Answers (2)
Sofie and the members of her homeowner's association have homeowner's policies on their coastal dwellings. They have heard that there are 11 named hurricane storms predicted for their coastal area this year.
Answers (1)
Suppose a foreign investor who holds tax-exempt Eurobonds paying 10.50% is considering investing in an equivalent-risk domestic bond in a country with a 28% withholding tax on interest paid to foreigners. If 10.
Answers (1)
Exercise 201 This information relates to Crane Co. for the year 2022. Retained earnings, January 1, 2022 $56,000 Advertising expense 1,800 Dividends paid during 2022 10,000 Rent expense 10,000 Service revenue 63,500 Utilities expense 2,300 Salaries
Answers (1)
New Questions in Business
Lawrence has worked in his career field for 20 years. one benefit of his experience over younger employees lies in
Answers (1)
Ingredient lists on gum packages remain somewhat vague, even though these labels fall under federal regulations, because the manufacturers feel their ingredient lists are _[blank]_.
Answers (1)
Kirsten is trying to decide where to go for her well earned vacation. She would like to camp, but if the weather is bad, she will have to go to a motel.
Answers (1)
At the end of the year, Mercy Cosmetics' balance of Allowance for Uncollectible Accounts is $400 (credit) before adjustment. The balance of Accounts Receivable is $15,000.
Answers (1)
A mutual fund had NAV per share of $19.00 on January 1, 2016. On December 31 of the same year, the fund's NAV was $19.14. Income distributions were $0.57, and the fund had capital gain distributions of $1.12.
Answers (1)