randle Manufacturers Inc. is approached by a potential customer to fulfill a one-time - only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for saleo regular customers:Variable costs:Direct materials$140Direct labor100Manufacturing supportMarketing costs10555Fixed costs:Manufacturing support175Marketing costs65Total costs640Markup (50%)320Targeted selling price$960For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.)OA $320OB. $640OC $480OD. S400CalculatorNextMacBook Proesc%23&*2.34.6.8deleteRYFG HK

Introduction: All expenses incurred by a firm to advertise and sell its products, as well as to…

andle Manufacturers Inc. is approached by a potential customer to fulfill a one - time- only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for regular customers: Wariable costs: Direct materials $140 Direct labor 100 Manufacturing support 105 Marketing costs Fxed costs: 55 Manufacturing support 175 Marketing costs 65 Total costs 640 Markup (S0%) 320 Targeted selling price $960 For Crandie Manufacturers Inc., what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.) OA $320 OB. $640 OC S480 OD. $400

andle Manufacturers Inc. is approached by a potential customer to fulfill a one - time- only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for regular customers: Wariable costs: Direct materials $140 Direct labor 100 Manufacturing support 105 Marketing costs Fxed costs: 55 Manufacturing support 175 Marketing costs 65 Total costs 640 Markup (S0%) 320 Targeted selling price $960 For Crandie Manufacturers Inc., what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.) OA $320 OB. $640 OC S480 OD. $400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variable cost to produce this component is $1.56 per unit; full cost is $1.98. The component sells on the open market for $4.96. Assuming Division East has excess capacity, what is the lowest price Division East will accept for the component? What is the highest price that Division West will pay for it? (Enter your answers in 2 decimal places.)
Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable number of customers. Data from the most recent period concerning these products appear below: Annual sales volume Velcro 101,800 Metal 203,600 Nylon 407,200 Unit selling price $ 1.65 $ 1.50 $ 0.85 Variable expense per unit $ 1.25 $ 0.70 Contribution margin per unit $ 0.40 $ 0.80 $ 0.25 $ 0.60 Total fixed expenses are $407,200 per period. Of the total fixed expenses, $20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped, and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $247,200 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely. The company's managers would like…
B. Hygienics Co produces free-standing sanitiser units for domestic and commercial use. They produce a single product in a highly competitive market. They have gathered the following expected information for the year 2021: £Selling price (per unit) Direct materials (per unit)Direct labour (per unit) 155.00 60.25 30.50Other costs are estimated for the year 2021 based on the expected sales of 62,000 units. These costs are given below: Fixed Costs Variable CostsOperating Costs 420,000 1,750,000Marketing Costs 350,000 122,500Storage Costs 570,000 101,000Administration Costs 232,000 - For the year 2021, you are required to calculate: a) the expected profit or loss b) breakeven point in units and sales revenue c) margin of safety in units and % change d) the profit/loss if the selling price is increased by 5% and sales quantity decreases by 50% e) the revised break-even point in units for (d)
A manufacturing company decides which of three mutually exclusive products to make in its factory on the basis of maximising the company's throughput accounting ratio. Current data for the three products is shown in the following table: Product X Product Y Product Z $20 Selling price per unit $60 $40 Direct material cost per unit $40 $10 $16 Machine hours per unit 10 20 2.5 Total factory costs (excluding direct materials) are $150,000. The company cannot make enough of any of the products to satisfy external demand entirely as machine hours are restricted. Which of the following actions would improve the company's existing throughput accounting ratio? Increase the selling price of product Z by 10% Increase the selling price of product Y by 10% Reduce the material cost of product Z by 5% O Reduce the material cost of product Y by 5%
Subject: acounting
Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JITDistributors Non-JITDistributors Sales orders 1,000 100 Sales calls 70 70 Service calls 350 175 Average order size 650 6,500 Manufacturing cost/unit $125 $125 Customer costs: Processing sales orders $3,380,000 Selling goods 1,120,000 Servicing goods 1,050,000 Total $5,550,000 Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar. JIT…
Branded Shoe Company manufactures only one type of shoe and has two divisions, the Stitching Division and the Polishing Division. The Stitching Division manufactures shoes for the Polishing Division, which completes the shoes and sells them to retailers. The Stitching Division "sells" shoes to the Polishing Division. The market price for the Polishing Division to purchase a pair of shoes is $48. (Ignore changes in inventory.) The fixed costs for the Stitching Division are assumed to be the same over the range of 40,000-101,000 units. The fixed costs for the Polishing Division are assumed to be $17 per pair at 101,000 units. Stitching's costs per pair of shoes are: Direct materials $11 Direct labor $9 Variable overhead $7 Division fixed costs $5 Polishing's costs per completed pair of shoes are:…
The Eastern division sells goods internally to the Western division of the same company. The quoted external price in industry publications from a supplier near Eastern is $200 per ton plus transportation. It costs $20 per ton to transport the goods to Western. Eastern's actual market cost per ton to buy the direct materials to make the transferred product is $100. Actual per ton direct labor is $50. Other actual costs of storage and handling are $40. Assuming there is an excess capcity in the Eastern Division, the minimum and maximum transfer price are:
Dewey Manufacturing has been approached by a new customer with an offer to purchase 500 units of its hands-free automotive model SMAK at a price of $15,000 per unit. Existing sales would not be affected, and Dewey has sufficient capacity to produce the special order. Fixed overhead will not change if Dewey accepts the order or not. Unit cost data is: Per Unit: Direct Materials $6,000 Direct Labor $2,500 Variable OVHD $3,500 Fixed OVHD $10,000 $22,000 Normal sales price is $27,000. Assume Dewey decides to accept the order. How much will their operating income change? Should they have accepted the order