The Varone Company Makes a Single Product Called a Hom

question 38

Multiple Choice

The Varone Company makes a single product called a Hom. The company has the capacity to produce 40,000 Homs per year. Per unit costs to produce and sell one Hom at that activity level are: The regular selling price for one Hom is $60. A special order has been received at Varone from the Fairview Company to purchase 8,000 Homs next year at 15% off the regular selling price. If this special order were accepted, the variable selling expense would be reduced by 25%. However, Varone would have to purchase a specialized machine to engrave the Fairview name on each Hom in the special order. This machine would cost $12,000 and it would have no use after the special order was filled. The total fixed costs, both manufacturing and selling, are constant within the relevant range of 30,000 to 40,000 Homs per year. Assume direct labor is a variable cost.
-If Varone can expect to sell 32,000 Homs next year through regular channels and the special order is accepted at 15% off the regular selling price,the effect on net operating income next year due to accepting this order would be a:

• A)$52,000 increase
• B)$80,000 increase
• C)$24,000 decrease
• D)$68,000 increase

Identify the legal responsibilities of landlords and tenants under various circumstances.

Recognize different forms of property co-ownership and their effects on property rights.

Comprehend the legal mechanisms available for mortgage redemption and foreclosure.

Identify the role and limitations of registered covenants in real-property transactions.

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Definitions:

Principles of Graphic Design

Fundamental guidelines for creating visual compositions using elements like typography, imagery, and color to convey messages effectively.

Textual Messages

Messages conveyed through written text, as opposed to verbal or visual communication.

Formal Balance

A principle of design where elements are arranged symmetrically or asymmetrically to create a sense of equal visual weight.

Informal Balance

A casual or relaxed equilibrium in various aspects of life or work, not strictly adhering to formal rules or structures.