The following information relates to the magna company for the upcoming year, based on 402,000 units. amount per unit sales $ 10,452,000 $ 26.00 cost of goods sold 6,432,000 16.00 gross margin 4,020,000 10.00 operating expenses 462,300 1.15 operating profits $ 3,557,700 $ 8.85 the cost of goods sold includes $1,360,000 of fixed manufacturing overhead; the operating expenses include $116,000 of fixed marketing expenses. a special order offering to buy 66,000 units for $15.90 per unit has been made to magna. fortunately, there will be no additional operating expenses associated with the order and magna has sufficient capacity to handle the order. how much will operating profits be increased if magna accepts the special order?

Ans. The operating profits will increased by $216,683.58 by increasing the sales by 66,000 units ( $1,049,400)

Explanation:

Hi, first we have to consider that Magna has sufficient capacity to handle this additional order, it means that its manufacturing overhead is not going to increase, in other words, our costs of goods sold, for the first 402,000 units are going to be $13/unit (COGS no manufacturing overhead)+ $1,360,000 of fixed manufacturing overhead.

We could do the same with the operating expenses, but there is no use for that since no additional operating expenses (as a whole) need to be added for this additional 66,000 units.

Before this additional 66k sale, this is what we have.

                                Unit

Amount                         402,000  

Sales                                 $26   $10,452,000  

COGS(no overhead)          $13   $5,072,000  

Fixes man overhead            $3           $1,360,000  

Gross Margin                             $10    $4,020,000  

Oper expenses                    $0.86     $346,300

Fixed Marketing expense    $0.29      $116,000

Operating profit                             $3,557,700  

Now, let´s see how it looks when we add this additional 66k units to the P&L statement.

  Unit

Amount                         468,000  

Sales                                 $26   $10,452,000

Sales( at $15.90)                     $15.9        $ 1,049,400

COGS(no overhead)          $13   $5,904,716  

Fixes man overhead            $3           $1,360,000  

Gross Margin                             $10    $4,236,684  

Oper expenses                    $0.86     $346,300

Fixed Marketing expense    $0.29      $116,000

Operating profit                             $3,774,383

Therefore, the company´s operating profits will increase in $216,683.58

($3,774,383.58  - $3,557,700).

Best of luck.

sound is invisible, but sometimes we can feel it. when a kettle-drum is thumped with a stick that time the tight drum skin moving up and down very quickly for some time and then it pumped sound waves into the air. loudspeakers also work in a similar manner.

components of a speaker:

electromagnet

in order to translate an electrical signal into an audible sound, an electromagnet is used in looudspeakers

  suspension

suspension is used to   center the voice coil in the gap of the magnet and it exerts a restoring force to keep it there. suspension is used to limits the maximum mechanical excursion of the diaphragm and voice coil.

voice coil

voice coil is a coil of wire which is attached to the apex of a loudspeaker cone. it provides the motive force to the cone by the reaction of a magnetic field to the current passing through it.

cone

in a   loudspeaker, a   thin, semi-rigid membrane attached to the voice coil, which moves in a magnetic gap due to which it vibrates   and produced sound. it is known as diaphragm and it can also be called a cone, though not all speaker diaphragms are cone-shaped.

surround

surround is also known as front suspension. surround is used to join the cone to the chassis. together with the suspension it controls the cone excursion, and it is also used to   determine how energy which is   travelling through the cone is absorbed, and how the speaker limits when it reaches the ends of its travel.

dustcap

dustcap is used to protect the voice coil from dust and dirt. it is a part of the cone.

how speaker work

the outer part of the cone is fastened to the outer part of the loudspeaker's circular metal rim. the inner part is fixed to   voice coil that sits just in front of a permanent magnet . when loudspeaker is hooked up to a stereo, electrical signals feed through the speaker cables into the coil. it will convert the coil into an electromagnet magnet . when electricity flows back and forth in the cables, the electromagnet either repels or attract the permanent magnet. this moves the coil back and forth, and it pull and push the loudspeaker cone. like a drum skin vibrating back and forth, the moving cone pumps sounds out into the air.in this way loudspeakers works.

d) social security number

let me know if i am correct or not, so i can edit the answer.