Q. 2 A company contemplating the acceptance of a special order has the following unit costs based on 10,000 units: A company contemplating the acceptance of a special order has the following unit costs based on 10000 units:Direct materials $5Direct laborVariable overhead 8Fixed overhead11$12500.O $(12500).O $9500.O $(9500).4A foreign company wants to purchase 2500 units at a special unit price of $29. The normal selling price per unit is $40. In addition, aspecial stamping machine will have to be purchased for $3000 in order to stamp the foreign company's name on the product. Theincremental income (loss) from accepting the order is

Additional cost due to accepting new order = Direct material + Direct labor + variable manufacturing…

Answered: A company contemplating the acceptance…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider the following production and cost data for two products, H and C: Product H $120 10 minutes Product C $112 8 minutes Contribution margin per unit Machine minutes needed per unit A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? Multiple Choice O $780,000 $1,560,000 $840,000 $720,000
Sale (50 000 units) Direct materials Direct wages Fixed production overhead Variable production overhead Administration overhead Selling and distribution overhead Profit/(loss) ii. (£000) iii. 350 200 200 50 180 120 (£000) 1,000 There are several proposals that have been gathered for consideration: i. Pay salesmen a commission of 10 percent of sales and thus increase sales to achieve break-even point. 1,100 (100) Reduce selling price by 10 percent, which would increase sales volume by 30 percent. Increase direct wage rates by 25 percent per unit, as part of a productivity deal. It is projected that this would increase production and sales unit by 20 percent, and advertising costs would also increase by £50,000. iv. Increase sales by having additional advertising of £300,000, with an increased selling price of 20 percent whilst setting a profit margin of 10 percent. Required: You need to evaluate the proposals by showing all the relevant workings and present this at the Board of…
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provide the answer with correct option with
32.This is Cost Accounting. Explain briefly and answer. The following information pertains to Lannister Manufacturing Corporation’s Product Y: Annual Demand 33,750 units Annual cost to hold one unit of inventory P15 Setup cost (or the cost to initiate a production run) P500 Beginning Inventory of Product Y - 0 - At present, the company produces 2,250 units of Product X per production run, for a total of 15 production runs per year. The company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product Y If the EOQ model is used, what should be the number of production runs? (round to whole number)
Current Attempt in Progress A company contemplating the acceptance of a special order has the following unit costs based on 10000 units: Direct materials Direct labor Variable overhead Fixed overhead $4 O $(2800). O $6800. O $(6800). $2800. 13 8 5 A foreign company wants to purchase 1700 units at a special unit price of $29. The normal selling price per unit is $40. In addition, a special stamping machine will have to be purchased for $4000 in order to stamp the foreign company's name on the product. The incremental income (loss) from accepting the order is
A-6
28. If a company follows target costing approach, and normally expects a markup on cost of 20% and estimates that a new product will sell successfully at a price of OMR 60, then the maximum cost of production should be _______ a. OMR 50 b. OMR 120 c. OMR 20 d. OMR 10
uod cz 1.The cost to produce one unit of the product is: Material $ 13.00 Labor $8.00 Variable cost $7.00 Fixed expenses $ 18.00 Total fixed expenses: $ 500,000 The company's normal capacity is 100,000 units. The figures given above are for 80,000 units. The company has received a special offer for 20,000 units for a price of $ 36 per unit from a foreign customer. Advice the manufacturer on whether the order should be accepted or not. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 3 (12pt) Qi:公 Arial vE - E T TTTT Paragraph v T T S T HTML CSS O fr Mashups
33

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