Tunnel incorporated provided the following information regarding its single product: direct materials used $ 210 comma 000 direct labor incurred $ 470 comma 000 variable manufacturing overhead $ 120 comma 000 fixed manufacturing overhead $100,000 variable selling and administrative expenses $ 55 comma 000 fixed selling and administrative expenses $20,000 the regular selling price for the product is $80. the annual quantity of units produced and sold is 43 comma 000 units (the costs above relate to the 43 comma 000 units production level). the company has excess capacity and regular sales will not be affected by this special order. there was no beginning inventory. what would be the effect on operating income of accepting a special order for 1 comma 440 units at a sale price of $ 41 per product? the special order units would not require any variable selling and administrative expenses. (round any intermediary calculations to the nearest cent. round your final answer to the nearest dollar.)

Which critical success factor improves with reduced cycle time, better quality standards, and improved efficiency when an is is implemented?

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

Comprehensive illustrative problem: mira's store on february 1 20a4 mica delaman opened astore that sells school supplies her main customer are the students and teachers of happy students school that is situated in front of her store. mira wanted to know the financial position of mira's store. mira knew you were studying accounting. so she asked for . 1. to start her business mira's opened a checking account in the name of mira's store . the statement of account from the bank shows that the checking account has a balance of 31,535 of december 31,20a4