Farrow co. expects to sell 400,000 units of its product in the next period with the following results. sales (400,000 units) $ 6,000,000 costs and expenses direct materials 800,000 direct labor 1,600,000 overhead 400,000 selling expenses 600,000 administrative expenses 1,028,000 total costs and expenses 4,428,000 net income $ 1,572,000 the company has an opportunity to sell 40,000 additional units at $12 per unit. the additional sales would not affect its current expected sales. direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. however, the additional volume would create the following incremental costs: (1) total overhead would increase by 15% and (2) administrative expenses would increase by $172,000. calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit.

The questions of economics address which of the following ? check all that apply

For each of the following cases determine the ending balance in the inventory account. (hint: first, determine the total cost of inventory available for sale. next, subtract the cost of the inventory sold to arrive at the ending balance.)a. jill’s dress shop had a beginning balance in its inventory account of $40,000. during the accounting period jill’s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. jill’s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. salaries of sales personnel amounted to $31,000. administrative expenses amounted to $35,600. cost of goods sold amounted to $82,300.b. ken’s bait shop had a beginning balance in its inventory account of $8,000. during the accounting period ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. sales discounts amounted to $640. ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. selling and administrative cost amounted to $12,300. cost of goods sold amounted to $33,900.a& b. cost of goods avaliable for sale? ending inventory?

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.