Order from Custco-Medical: 5,500 units at $570 per unit with deluxe mask$59 per unit.• Order from Laboratory-Apex: 4,500 units at $635 per unit with standardmask $45 per unit.Since these orders were made directly to Taino Ventilators, Inc., no variable sellingcosts will be incurred.1. Analyze the profitability of each of these two special orders.2. Which special order should be accepted?3. What other aspects need to be considered in addition to profitability? Cost ProblemTaino Ventilators, Inc. makes a variety of ventilators. One of these products is aVentilators model: Super Air-XL. This model includes the ultimate in technology and is instrong demand. Expected demand for this year is 57,000 units. Full production capacityfor SuperAir--XL is 64,000 units, but 57,000 units are considered normal capacity. Thefollowing unit price and breakdown is applicable in 2022:Per UnitSales PriceLess manufacturing costs:$685.00Materials$66.00$22.00$23.00$26.00$137.00$548.00Direct LaborOverhead: VariableFixedTotal manufacturing costsGross MarginLess selling and administrative expensesSelling: VariableFixedAdministrative, FixedMasks Options, variable*Total selling and administrative expenses|Net Profit before taxes$5.00$46.00$72.00$59.00$182.00$366.00During December, the company received 2 special orders request from: Custco-Medicaland Laboratory-Apex. These orders are not part of the budgeted 57,000 units sales ofSuperAir -XL for 2022, but there is sufficient capacity for possibly one order to beaccepted. Orders received and their terms are:

Variable cost refers to the expenses that fluctuate when there are fluctuations in the number of…

$59 per unit. Order from Laboratory-Apex: 4,500 units at $635 per unit with standard mask $45 per unit. Since these orders were made directly to Taino Ventilators, Inc., no variable selling costs will be incurred.

$59 per unit. Order from Laboratory-Apex: 4,500 units at $635 per unit with standard mask $45 per unit. Since these orders were made directly to Taino Ventilators, Inc., no variable selling costs will be incurred.

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

Please help me with show all calculation thanku
Please Introduction and explanation and proper solution please without plagiarism
pare.2
Rundle Corporation sells products for $28 each that have variable costs of $11 per unit. Rundle's annual fixed cost is $404,600. Mc Graw Hill mou Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
REQUIRED Calculate the number of orders that should be placed based on the quantity that will keep the cost of placing the orders and the holding costs at a minimum. INFORMATION The following information was supplied by KL Suppliers for the only product that it sells: Monthly demand Unit cost Fixed cost per order Carrying cost per unit EOQ 300 units R20 R25 10% of the unit cost 300 units
Costs are $28 per unit, which consists of $8 direct materials per unit, $10 direct labor per unit, $4 variable overhead per unit, and $6 fixed overhead per unit. Regular selling price is $40 per unit. Sales are low because of a recession. A large retail chain offered to buy 1,000 units from you at a discounted price of $28. Assume that you have enough spare capacity to fulfill this order. If you accept the special order in the short term, profit will O increase by $6,000 decrease by $12,000 decrease by $6,000 remain the same increase by $12,000
Pau, Inc., which has fixed costs of $51401, sells two products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below. Sales Price Variable Cost Sales Mix Product A Product B $ $ $23 $8 40 % 16 7 60% How many units of Product B must Pau sell to break even Do not round intermediate calculations. Round your final answer to the nearest whole number. 0 out of 1 points
What is correct option? No plagiarism please
devuben
Steven Company has fixed costs of $230,400. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $1,376 $516 $860 Y 667 357 310 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number.fill in the blank 1 units of Xfill in the blank 2 units of Y