Nebraska Company uses activity-based costing. The company produces and sells 20,000 units at $20 per unit. Nebraska Company's product cost is calculated as follows:
Variable costs $8 per unit
Fixed costs $2 per unit
Setup costs $3 per unit
Total costs $13 per unit
A total of 500 setups at a cost of $120 per setup are required to produce the 20,000 units. Nebraska Company has received a special order to sell 5,000 units at $11 per unit. Nebraska Company has excess capacity available, but these 5,000 units would require 60 setups. If Nebraska Company accepts the special order, what is Nebraska's increase in net income?
A) increase $5,000
B) increase $7,800
C) decrease $2,800
D) decrease $5,000
B
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Which of the following statements related to space is incorrect?
a. In the United States, the social zone is used for interacting impersonally in business situations. b. In the United States, offices on the fourth floor have more status than those on the first floor. c. French top-level executives have private offices. d. The Japanese do not consider private offices appropriate.
The concepts of "business necessity" and "job relatedness" first arose in the ________ case
Fill in the blanks with correct word