Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent:
Direct materials $8,400
Direct labor 11,250
Variable overhead 12,600
Fixed overhead 16,200
An outside supplier has offered to sell Clemente the subcomponent for $2.85 a unit.
If Clemente accepts the offer, by how much will net income increase (decrease)?
a) $(8,850)
b) $(2,850)
c) $3,750
d) $19,950
c) $3,
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An employer receives an immediate tax deduction for pension and profit-sharing contributions made on behalf of employees.
a. true b. false
A broker signs a listing agreement with a seller. The agreement contains the following clause: "If the property has not been sold after three months from the date of this signing, this agreement will automatically continue for additional three-month periods thereafter until the property is sold." Based on these facts, the agreement
A) is legal under Texas law because the list periods are for fewer than six months each. B) provides grounds for loss of the broker's license. C) automatically receives a statutory six month listing period to this open listing in Texas. D) is legal under Texas law because it contains a reference to a specific time limit.