Speed Quest Inc manufactures speed boats. Currently, the company manufactures its own engine for the boats at the following unit costs: Direct materials $25.00 Direct labor $40.00 Variable overhead $15.00 Fixed overhead $20.00 Another manufacturer has offered to supply Speed Quest with the engine at a cost of $85 each. Speed Quest currently makes 1,000 boats annually. If Speed Quest accepts the
offer, what will be the short-term impact on net income?
A) Decrease of $5,000.
B) Increase of $15,000.
C) Decrease of $85,000.
D) Increase of $20,000.
A
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Which ratio will increase when accounts payable is not recorded?
a. Accounts payable/Inventory b. Quick assets/Current liabilities c. Accounts payable/COGS d. Accounts payable/Total liabilities
Which of the following statements regarding merchandise inventory is not true?
A. Merchandise inventory appears on the balance sheet of a service company. B. Merchandise inventory is reported on the balance sheet as a current asset. C. Merchandise inventory refers to products a company owns and intends to sell. D. Purchasing merchandise inventory is part of the operating cycle for a business. E. Merchandise inventory may include the costs of freight-in and making them ready for sale.
Cotton Products Corporation is a public company whose shares are traded in the public securities markets. With respect to financial and other significant information concerning its securities, the Securities Act of 1933
a. imposes increased responsibility on chief corporate executives. b. prevents insiders from trading among themselves. c. requires disclosure. d. creates a "safe harbor" for companies to make forward-looking statements.
The Internet is a worldwide network of computer networks
Indicate whether the statement is true or false