Elkhorn, Inc., which has excess capacity, received a special order for 4,000 units at a price of $15 per unit. Currently, production and sales are anticipated to be 10,000 units without considering the special order. Budget information for the current year follows. Sales$190,000 Less: Cost of Goods Sold 145,000 Gross Margin$45,000 Cost of goods sold includes $30,000 of fixed manufacturing cost. If the special order is accepted, the company's income will:
A. increase by $2,000.
B. decrease by $14,000.
C. increase by $14,000.
D. decrease by $2,000.
E. None of the answers is correct.
Answer: C
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Clearwater Hampers is a small British company that sells luxury food and drinks in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business as well as are a number of department stores. Clearwater has had several orders for more than a quarter of a million dollars and prides itself on how much repeat business it does. The company's leading salesperson, Peter Austin, is placed in charge of an important territory divided on the basis of geography and sales potential. He classifies his customers according to the size of their average orders.The product handled by Austin has an average gross profit percentage of
25%. Austin's annual salary and expenses total $200,000. Austin works 8 hours a day, 5 days a week, and 40 weeks in a year. What is Austin's break-even volume per hour? A. $500.00 B. $265.00 C. $100.00 D. $150.00
________ are federal agencies that have broad regulatory powers over key areas of the national economy
A) Independent federal administrative agencies B) State administrative agencies C) Law enforcement agencies D) Cabinet-level federal departments
Which of the following best describes German consultation rights?
A. German companies must consult with the employees before making any changes in the nature of their work. B. German companies must consult with their employer association before bargaining with employees. C. German companies must consult with the government before making any changes that could affect the economy. D. Employees have the right to consult their elected government officials about changes to the nature of their work.
A company sold merchandise for $23,000 on account with terms of 3/15, n/30. The company uses a perpetual inventory system. After two days, it received defective merchandise worth $2,000
The journal entry to record the cash receipt for the sale if the payment is received within 10 days of the invoice date would include ________. A) a debit to Cash for $20,370, a credit to Merchandise Inventory for $630, and a credit to Sales Revenue for $21,000 B) a debit to Cash for $20,370, a debit to Sales Discount for $630, and a credit to Accounts Receivable for $21,000 C) a debit to Cash for $21,000, a debit to Merchandise Inventory for $2,000, and a credit to Accounts Receivable for $23,000 D) a debit to Sales Revenue for $23,000, a credit to Accounts Receivable for $21,000, and a credit to Sales Discounts for $2,000