Accept Business at Special PriceProduct D is normally sold for $42 per unit. A special price of $35 is offered for the export market. The variable production cost is $26 perunit. An additional export tariff of 16% of revenue must be paid for all export products. Assume that there is sufficient capacity for thespecial orderPrepare a differential analysis dated March 16, on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required,round your answers to two decimal places. If an amount is zero, enter "O". For those boxes in which you must enter subtracted or negativenumbers use a minus signDifferential AnalysisReject Order (Alt. 1) or Accept Order (Alt. 2)March 16Differential EffectAccept OrderReject Order(Alternative 1) (Alternative 2)on Income(Alternative 2)3535Revenues, per unitCosts:26 X26 X26Variable manufacturing costs, per unitX5.605.60Export tariff, per unit3.403.40Income (Loss), per unitX

Calculate export tariff:Export tariff = $35*16%Export tariff = $5.60

Answered: Accept Business at Special Price…

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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N2. Account
Crane Corporation budgeted 10,300 tablet cases for production during the current year. Crane has capacity to produce 12,360 units. Fixed factory overhead is allocated to production. The following estimated costs have been provided: Direct material ($8/unit) Direct labor ($15/hr. x 2 hrs./unit) Variable manufacturing overhead ($3/unit) Fixed factory overhead costs ($5/unit) Total Cost per unit = $46 ($473,800 + 10,300) $82,400 309,000 30,900 51,500 $473,800 Answer each of the following independent questions:
Product A has revenue of $195,600, variable cost of goods sold of $114,200, variable selling expenses of $33,900, and fixed costs of $59,200, creating a loss from operations of $11,700. Prepare a differential analysis as of May 9, to determine whether Product A should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "O". For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Continue Product A (Alt. 1) or Discontinue Product A (Alt. 2) May 9 Differential Effect Continue Product Discontinue Product on Income A (Alternative 1) A (Alternative 2) (Alternative 2) 195,600 -195,600 Revenues Costs: -114,200 X 114,200 X Variable cost of goods sold 33,900 X -33,900 X Variable selling expenses 59,200 X X 59,200 Fixed costs 11,700 -59,200 -47,500 Income (Loss)
Jacoby Company received an offer from an exporter for 29,500 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Line Item Description Amount Domestic unit sales price $25 Unit manufacturing costs: Variable 9 Fixed 4 The differential revenue from the acceptance of the offer is a. $1,268,500 b. $206,500 c. $737,500 d. $531,000
Process or Sell Product P is produced for $31 per gallon. Product P can be sold without additional processing for $47 per gallon or processed further into Product Q at an additional cost of $7 per gallon. Product Q can be sold for $50 per gallon. Prepare a differential analysis dated February 26 on whether to Sell Product P (Alternative 1) or Process Further into Product Q (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product P (Alt. 1) or Process Further into Product Q (Alt. 2) February 26 Process Further Sell Differential into Product Q Product P Effect (Alternative 2) (Alternative 1) (Alternative 2) Revenues, per unit $ Costs, per unit Profit (loss), per unit Should Product P be sold (Alternative 1) or processed further into Product Q (Alternative 2)?
A4)
A buyer for home furnishings orders merchandise from a North Carolina vendor totaling 2,800. The vendor offers two options a) 3/10 net 30 FOB Destination (to buyers' warehouse or (b) 6/10 FOB Factory. If transportation costs are @250, which would be the better option for the buyer?
Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. Required: a. Assume that only one product is being sold in each of the four following case situations: b. Assume that more than one product is being sold in each of the four following case situations: Complete this question by entering your answers in the tabs below. Required A Required B Assume that only one product is being sold in each of the four following case situations: (Loss amounts should be indicat a minus sign.) Units sold Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Contribution margin per unit Required A Required B Sales Variable expenses Contribution margin $ Fixed expenses Net operating income (loss) Contribution margin ratio (percent) $ $ Case 1 8,000 216,000 $ 160,000 56,000 92,000 (36,000) $ 7 $ $ $ Case 2 Case 1 454,000 323,400 65.600 174,000 (12,300) $ 11 $ Assume that more than one product is being sold in each of…
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Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer. During the past quarter, the purchasing and delivery data for the two suppliers showed the following. Milan Dundee Total Total purchases (cartons) 98,000 42,000 140,000 Average purchase price (per carton) $ 20.00 $ 22 $ 20.60 Number of deliveries 80 20…
SCHEDULE 1(Form 1040)Department of the Treasury Internal Revenue Service Additional Income and Adjustments to Income ► Attach to Form 1040.► Go to www.irs.gov/Form1040 for instructions and the latest information. OMB No. 1545-0074 2018 AttachmentSequence No. 01 Name(s) shown on Form 1040Noah Yobs Your social security number 123-45-6789 Additional Income 1-9b Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-9b 10 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . 10 11 Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . . . . . . 12 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here ► ◻ 13 14 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . 14 15a…

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