Bluebird Mfg has received a special one time order for 15000 bird feeders at $3.20 per unit. Bluebird currently produces and sells 75000 units at $7.20 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect bluebird sales accepts this additional business, the effect on net income will be?

Q: Finn Enterprises manufactures ceiling tans that normally sell for $82 each. There are 320 defective…

A: In order to determine whether to sold defective units as-is or after further processing, we should…

Q: Kando Company incurs a $11.00 per unit cost for Product A, which it currently manufactures and sells…

A: Introduction: Incremental analysis, also known as the relevant cost approach, marginal analysis, or…

Q: Diamond Boot Factory normally sells its specialty boots for $35 a pair. An offer to buy 70 boots for…

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Q: Coney Adventures Inc. sells one product for $5. The variable cost per item is $3, and the fixed…

A: Coney Adventures Inc. sells its product at $ 5 per unit which has a variable cost of $ 3 and has a…

Q: dit, which will affect the actual cost of asset being sold for the buyer and the seller. Consider…

A: 1/10 , net 30Discount of 1% for 10 days.

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A: Special order decisions are useful form of decisions being taken in business. Under this,…

Q: At Crane Electronics, it costs $32 per unit ($19 variable and $13 fixed) to make an MP3 player that…

A: Special Order Details (Variable Cost Only)Selling price offered per unit: $26Additional shipping…

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A: Deciding to either manufacture a product internally or buy it from an outside provider is known as a…

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A: Step 1: Workings:

Q: Wok Around the Clock, Inc., sells specialty woks. In the current year it expects to incur $840,000…

A: Accept or reject the order is one of the managerial decision making analysis. This helps the…

Q: Diamond Boot Factory normally sells its specialty boots for $25 a pair. An offer to buy 80 boots for…

A: In special order decision question, offer price is compared with the the relevant cost. relevant…

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A: The differential analysis is performed to compare the different alternatives available with the…

Q: Sandhill Enterprises produces giant stuffed bears. Each bear consists of $18 of variable costs and…

A: Special order means one-time order that is received from not a regular customer. Special order…

Q: Oriole Company sells 455 units for $290 each to Sheffield Inc. for cash. Oriole allows Sheffield to…

A: The refund liability is the amount of consideration that the reporting entity does not expect to be…

Q: It costs Cullumber Company $18 of variable costs and $3 of fixed costs to produce its product. The…

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

Q: le and $5 of TIxed costs to produce one bathroom rchase 980 scales at $17 each. Bramble would in ed.…

A: Bramble Co has received a special order . It has sufficient unused capacity to produce this special…

Q: At Pharoah Electronics, it costs $33 per unit ($19 variable and $14 fixed) to make an MP3 player…

A: Fixed cost in total remains constant. So it is not relevant in decision making process. Variable…

Q: Holmes Company has already spent $94,000 to harvest peanuts. Those peanuts can be sold as is for…

A: The incremental cost analysis is that type of analysis that helps the management in detailing the…

Q: Determine the differential income or loss per pair of boots from selling to the organization. $…

A: Given is: Normal selling price = $30 per pair Offered selling price = $22 per pair

Q: Holmes Company has already spent $66,000 to harvest peanuts. Those peanuts can be sold as is for…

A: If there is an incremental income, then the company should process further. If there is incremental…

Q: Debit

A: Refund liability is the amount of sale revenue that the company does not expect or is entitled to.…

Q: Diamond Boot Factory normally sells its specialty boots for $20 a pair. An offer to buy 115 boots…

A: DIFFERENTIAL INCOME IS THE DIFFERENCE IN SALES THAT WILL BE GENERATED BY TWO DIFFERENT COURSES OF…

Q: It costs Sheridan Company $12 of variable and $$ of fixed costs to produce one bathroom scale which…

A: Since the fixed cost would remain the same disregarding any change in the output till the optimal…

Q: Lattimer Company had the following results of operations for the past year: Sales (15,000 units at…

A: The fixed costs generally do not changes when there is a change in the level of activity, the…

Q: Stryker Industries received an offer from an exporter for 22,000 units of product at $17 per unit.…

A: In decision making process we consider only incremental cost or relevant cost. Relevant cost is the…

Q: At Cullumber Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player…

A: In the special order can be accepted by the business if it leads to increase the net income for the…

Q: Fish Finder Company manufactures sonars for fishing boats. Model 100 sells for $400. They produce…

A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…

Q: At Cullumber Electronics, it costs $29 per unit ($20 variable and $9 fixed) to make an MP3 player…

A: The special order can be accepted by the business if it leads to increase the net income for the…

Q: Diamond Boot Factory normally sells its specialty boots for $23 a pair. An offer to buy 105 boots…

A: Managerial accounting: Managerial accounting is the process of identifying, measuring, analyzing,…

Q: Diamond Boot Factory normally sells its specialty boots for $35 a pair. An offer to buy 125 boots…

A: Differential income is the profit earned by comparing with alternative methods.

Q: Holmes Company has already spent $52,000 to harvest peanuts. Those peanuts can be sold as is for…

A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…

Q: Kando Company incurs a $9.00 per unit cost for Product A, which it currently manufactures and sells…

A: Introduction: Incremental analysis, also known as the relevant cost approach, marginal analysis, or…

Q: Snow Now sells snowboards. Snow Now knows that the most people will pay for the snowboards is…

A: Sale price= 129.99 which is at 45% markup on cost  1.45*cost = 129.99 cost = 129.99/1.45  = 89.648

Q: This question is based on t he following information: B Hon Company purchases thermostats and use…

A: Note: The 2nd question doesn't seems to be part of the database mentioned above. I request you to…

Q: Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company…

A: The cost volume profit analysis can be defined as the method of analyzing the effect of variable…

Q: Sammy Co. currently sells 1,000 units of product M for P2 each. Variable costs are P1.50. A discount…

A: Contribution from Special order=Units×Contribution per unit=400×P 1.70 - P 1.50=400× P 0.20=P 80

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.