A company's unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit salesprice per unit is $165. A special order from a foreign company has been received for 4100 units at $135 aunit. In order to fulfill the order, 2400 units of regular sales would have to be foregone. The incrementalprofit (loss) from accepting the order would be Select answer from the options below $157500. S(76500). $(123000). $30000.

Relevant cost is the cost that is different between different alternatives. This cost is considered…

Answered: A company's unit costs based on 100000…

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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It costs Bonita Industries $11 of variable and $5 of fixed costs to produce one scale which normally sells for $43. A foreign wholesaler offers to purchase 4100 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Bonita has sufficient unused capacity to produce the 4100 scales. If the special order is accepted, what will be the effect on net income? O $12300 increase $12300 decrease O $49200 decrease $61500 increase
Atlantic Company sells a product with a break-even point of 6,355 sales units. The varlable cost is $75 per unit, and fixed costs are $197,005. Determine the following: a. Unit sales price b. Break-even point in sales units if the company desires a target profit of $44,795 units Previous Next MacBook Air
Sheridan Company incurs a cost of $36 per unit, of which $20 is variable, to make a product that normally sells for $57. A foreign wholesaler offers to buy 7,000 units at $30 each. Sheridan will incur additional costs of $2 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Sheridan will realize by accepting the special order, assuming Sheridan has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45)) Revenues Costs Net income $ $ Reject Sheridan company should LA $ LA Should Sheridan Company accept the special order? ✓the special order. Accept $ LA LA $ Net Income Increase (Decrease) A SUPP
A product sells for $30 per unit and has variable costs of $18.00 per unit. The fixed costs are $960,000. If the variable costs per unit were to decrease to $16.50 per unit, fixed costs increase to $1,080,000, and the selling price does not change, break-even point in units would: Multiple Choice O O Equal 6,000. Increase by 24,828. Not change. Increase by 4,000. Decrease by 24,828.
Trailblazer Company sells a product for $270 per unit. The variable cost is $110 per unit, and fixed costs are $1,056,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $190,080. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the company desires a target profit of $190,080 fill in the blank 2 units

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