Black Horse Corporation manufactures a product with the following full unit costs at a volume of 2000 units:

Direct Materials $100

Direct Labor $40

Manufacturing Overhead (30% variable) $75

Selling expenses (50% variable) $25

Administrative expenses (10% variable) $40

Total Per unit $280

A company recently approached Black Horse’s management with an offer to purchase 225 units for $275 each. Black horse currently sells the product to dealers for $400 each. Black horse’s capacity is sufficient to produce the extra 225 units. No selling expenses would be incurred on the special order.

If Black Horse's management accepts the offer, profits will: Select one:

A. Increase by $33,40.
B. Decrease by $24,412.50
C. Decrease by $60,000
D. Increase by $24,412.50

Transactions on april 1 of the current year, andrea byrd established a business to manage rental property. she completed the following transactions during april: opened a business bank account with a deposit of $45,000 from personal funds. purchased office supplies on account, $2,000. received cash from fees earned for managing rental property, $8,500. paid rent on office and equipment for the month, $5,000. paid creditors on account, $1,375. billed customers for fees earned for managing rental property, $11,250. paid automobile expenses for month, $840, and miscellaneous expenses, $900. paid office salaries, $3,600. determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450. withdrew cash for personal use, $2,000. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)

Hi inr 2002 class! i just uploaded a detailed study guide for this class. you can check-out a free preview by following the link below feel free to reach-out to me if you need a study buddy or have any questions. goodluck!

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.