Current Attempt in ProgressSheffield Corp. manufactures a product with a unit variable cost of$100 and a unit sales price of $186. Fixed manufacturing costswere $480000 when 10000 units were produced and sold. Thecompany has a one-time opportunity to sell an additional 1000units at $140 each in a foreign market which would not affect itspresent sales. If the company has sufficient capacity to produce theadditional units, acceptance of the special order would affect netincome as follows:O Income would decrease by $8000.O Income would increase by $140000.O Income would increase by $40000.O Income would increase by $8000.

Answered: Current Attempt in Progress Sheffield…

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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MM currently carries out process B the output from which can be sold for $20 per unit and has variable costs of $7.50 per unit. Process B has directly attributable fixed operating costs of $ 40000 per annum. MM also carries out process C by using equipment that has running costs of $ 25000 per annum. The equipment could be sold now for $50000 (but this would incur dismantling costs of $7500) or in one year’s time for $45000 with dismantling costs of $8750.Process B could be adapted so that it incorporated process C.The existing process B machinery would have to be removed, either now at a dismantling cost of $12500 and with the sale of the machinery for $100000 or in one year’s time for $75000 with dismantling costs of $13750.Alternative process B machinery would have to be leased. This would cost $10000 per annum and have annual fixed costs of $30000.The existing process B machinery originally costs $250000 which bought five years ago. It is being depreciated at 10% per…
McPupper Steel has products that cost $10,500 to manufacture. The products can be sold as is for $13,000 or could be processed further for a cost of $2,100 and sold for $14,000. What would be the incremental profit or (loss) of processing the products further and selling them instead of selling them as is?
1. If the company accepts this offer and rejects some business from regular customers so as not to exceed capacity, what would be the total net operating income next year? 2. If the company rejects the offer of the foreign distributor, how much is the opportunity cost?
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Julie Brown started her own consulting firm, Wedding Consulting, on May 1, 2008. The trial balance at May 31 is as follows. WEDDING CONSULTING Trial Balance May 31, 2008 Ассount Number 101 Debit $ 6,500 4,000 3,600 1,500 12,000 Credit Cash 110 Accounts Receivable 120 130 135 Prepaid Insurance Supplies Office Furniture $ 6,500 Accounts Payable Common Stock Service Revenue Salaries Expense Rent Expense 200 311 19,100 400 6,000 510 3,000 520 1,000 $31.600 $31.600 In addition to those accounts listed on the trial balance, the chart of accounts for Wedding Consulting also contains the following accounts and account numbers: No. 210 Travel Payable, No. 320 Retained Earnings No. 540 Insurance Expense, No. 550 Travel Expense, and No. 560 Supplies Expense. Other data: 1. $500 of supplies have been used during the month. 2. Travel expense incurred but not paid on May 31, 2003, $200. 3. The insurance policy is for 2 years. Instructions (a) Journalize the adjusting entries for the month of May.…
Your Company is considering the addition of a new product to its current product lines. The expected cost and revenue data for the new product are as follows: Annual sales in units 3,000 Selling price per unit $309 Variable costs per unit: Production $130 Selling $50 Traceable annual fixed costs: Production $51,000 Selling $75,000 Allocated annual fixed cost $54,000 If the new product is added to the existing product line, then sales of existing products will decline. As a consequence, the contribution margin of the existing product lines is expected to drop $78,000 per year. What is the increase in net income if the new product is added next year? This is a reverse drop the segment. New CM is positive and new FC and lost CM are negative.
want correct answer
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a firm has the facilities for manufacturing two commodities A and B. the unit variable cost is $125 for A and $135 for B. the selling price is $209 for A and $225 for B. the capital available for the production of this commodity exclusive of that required to cover fixed cost is $65000 per month. the firm will produce only as many unit of each commodity as can readily be sold and it is essential that maximum monthly sales will be 290 unit of A and 450 unit of B. during its manufacture each unites must pass through three production department; the following table presents the relevant information pertaining to these departments. what monthly production each commodity will yields the maximum profit from this operation? number of machine hours required per unit commodity number of machine hours available per month production A B department D1 2.0 1.7 734 D2 1.4 2.6 824 D3 0.3 2.0 550 what is the maximum profit as calculated before deducing fixed cost?

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