Blog

An anticipated purchase of equipment for $490,000 with a useful life of 8 years and no residual value is expected to yield the following annual net incomes and net cash flows: Year Net Income Net Cash Flow 1 $60,000 $110,000 2 50,000 100,000 3 50,000 100,000 4 40,000 90,000 5 40,000 90,000 6 40,000 90,000 7 40,000 90,000 8 40,000 90,000 What is the cash payback period?

Which of the following are true about local education agencies?

Disadvantages of traditional bureaucracy and the merit system include which of the following?

Table #2 – Present Value of an Annuity of $1

What products should management focus its sales and production efforts on?

Table #1 – Present Value of $1

Which of the following political systems grants states and regional governments the freedom to experiment and innovate with regard to public policy?

Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $15 per unit. Fixed costs are $19,100 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,550 units with a special price of $19 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, what would be the impact on net income?

Table #1 – Present Value of $1

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units): Direct materials $70,000 Direct labor 20,000 Variable factory overhead 10,000 Fixed factory overhead 2,000 $102,000 Operating expenses: Variable operating expenses $17,000 Fixed operating expenses 1,000 18,000 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the contribution margin that would be reported on the variable costing income statement?