It costs Garner Company $12 of variable and $5 of fixed cost…

It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3,000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Garner has sufficient unused capacity to produce the 3,000 scales. If the special order is accepted, what will be the effect on net income?

Pole Co. is investing in a machine with a 3-year life. The m…

Pole Co. is investing in a machine with a 3-year life. The machine is expected to reduce annual cash operating costs by $30,000 in each of the first 2 years and by $20,000 in year 3. Present values of an annuity of $1 at 14% are Period 1 0.88Period 2 1.65Period 3 2.32  Using a 14% cost of capital, what is the present value of these future savings?

The following information pertains to Jones Co:             …

The following information pertains to Jones Co:                     Revenues                          $800,000                   Variable costs                     160,000                   Fixed costs                            40,000                     What is Jones breakeven point in revenues?