How do i solve the chart? Fixed costsFixed overheadFixed general and administrativeIncomeA potential customer offers to buy 50,000 units for $3.20 each. These sales would not affect the company's sales through its normalchannels. Details about the special offer follow.• Direct materials cost per unit and variable overhead cost per unit would not change.Direct labor cost per unit would be $0.54 because the offer would require overtime pay.Accepting the offer would require incremental fixed general and administrative costs of $5,000.Accepting the offer would require no incremental fixed overhead costs.Required:1. Compute income from the special offer.2. Should the company accept or reject the special offer?Required 1Complete this question by entering your answers in the tabs below.2Should the company accept or reject the special offer?Should the company accept or reject the special offer?20Required 2F20.200.15$ 3.25#380F3< Required 1$4F480,00060,000$ 1,300,00015%F5Required 2 >Prev1 of 1< 6MacBook Air77F6&7Next♡F7*8F8(9 3 AssignmentookintencesOF12JART manufactures and sells underwater markers. Its contribution margin income statement follows.For Year Ended December 31Sales (400,000 units)Variable costsDirect materialsDirect laborVariable overheadContribution marginFixed costsFixed overheadFixed general and administrativeIncomeContribution Margin Income StatementPer Unit$ 6.00Required 1Required:1. Compute income from the special offer.2. Should the company accept or reject the special offer?2A potential customer offers to buy 50,000 units for $3.20 each. These sales would not affect the company's sales through its normalchannels. Details about the special offer follow.F2WDirect materials cost per unit and variable overhead cost per unit would not change.Direct labor cost per unit would be $0.54 because the offer would require overtime pay.Accepting the offer would require incremental fixed general and administrative costs of $5,000.Accepting the offer would require no incremental fixed overhead costs.Complete this question by entering your answers in the tabs below.SRequired 2#Compute income from the special offer. (Round your "Per Unit" answers to 2 decimal places.)Special Offer Analysis380F3ED1.440.360.603.600.200.15$ 3.25$4QF4RFAnnual Total$ 2,400,000Per Unit%576,000144,000240,0001,440,00080,00060,000$ 1,300,000LO5Saved9F5Prev6Total1 of 1MacBook AirF6ITYIIE&7G HNextF7U* 08DIIF8J|(9F9KOO

The special order analysis is performed to analyze the change in income with the order completion.…

Fixed costs Fixed overhead Fixed general and administrative Income A potential customer offers to buy 50,000 units for $3.20 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow. . 0.20 0.15 $ 3.25 •. Direct materials cost per unit and variable overhead cost per unit would not change. • Direct labor cost per unit would be $0.54 because the offer would require overtime pay. • Accepting the offer would require incremental fixed general and administrative costs of $5,000. Accepting the offer would require no incremental fixed overhead costs. Required: 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? Required 1 Complete this question by entering your answers in the tabs below. Required 2 80,000 60,000 $ 1,300,000 Should the company accept or reject the special offer? Should the company accept or reject the special offer? < Required 1 Required 2 >

Fixed costs Fixed overhead Fixed general and administrative Income A potential customer offers to buy 50,000 units for $3.20 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow. . 0.20 0.15 $ 3.25 •. Direct materials cost per unit and variable overhead cost per unit would not change. • Direct labor cost per unit would be $0.54 because the offer would require overtime pay. • Accepting the offer would require incremental fixed general and administrative costs of $5,000. Accepting the offer would require no incremental fixed overhead costs. Required: 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? Required 1 Complete this question by entering your answers in the tabs below. Required 2 80,000 60,000 $ 1,300,000 Should the company accept or reject the special offer? Should the company accept or reject the special offer? < Required 1 Required 2 >

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

How do i solve the chart?

Fixed costs
Fixed overhead
Fixed general and administrative
Income
A potential customer offers to buy 50,000 units for $3.20 each. These sales would not affect the company's sales through its normal
channels. Details about the special offer follow.
• Direct materials cost per unit and variable overhead cost per unit would not change.
Direct labor cost per unit would be $0.54 because the offer would require overtime pay.
Accepting the offer would require incremental fixed general and administrative costs of $5,000.
Accepting the offer would require no incremental fixed overhead costs.
Required:
1. Compute income from the special offer.
2. Should the company accept or reject the special offer?
Required 1
Complete this question by entering your answers in the tabs below.
2
Should the company accept or reject the special offer?
Should the company accept or reject the special offer?
20
Required 2
F2
0.20
0.15
$ 3.25
#3
80
F3
< Required 1
$
4
F4
80,000
60,000
$ 1,300,000
15
%
F5
Required 2 >
Prev
1 of 1
< 6
MacBook Air
77
F6
&
7
Next
♡
F7
*
8
F8
(
9

3 Assignment
ook
int
ences
O
F1
2
JART manufactures and sells underwater markers. Its contribution margin income statement follows.
For Year Ended December 31
Sales (400,000 units)
Variable costs
Direct materials
Direct labor
Variable overhead
Contribution margin
Fixed costs
Fixed overhead
Fixed general and administrative
Income
Contribution Margin Income Statement
Per Unit
$ 6.00
Required 1
Required:
1. Compute income from the special offer.
2. Should the company accept or reject the special offer?
2
A potential customer offers to buy 50,000 units for $3.20 each. These sales would not affect the company's sales through its normal
channels. Details about the special offer follow.
F2
W
Direct materials cost per unit and variable overhead cost per unit would not change.
Direct labor cost per unit would be $0.54 because the offer would require overtime pay.
Accepting the offer would require incremental fixed general and administrative costs of $5,000.
Accepting the offer would require no incremental fixed overhead costs.
Complete this question by entering your answers in the tabs below.
S
Required 2
#
Compute income from the special offer. (Round your "Per Unit" answers to 2 decimal places.)
Special Offer Analysis
3
80
F3
E
D
1.44
0.36
0.60
3.60
0.20
0.15
$ 3.25
$
4
Q
F4
R
F
Annual Total
$ 2,400,000
Per Unit
%
576,000
144,000
240,000
1,440,000
80,000
60,000
$ 1,300,000
LO
5
Saved
9
F5
Prev
6
Total
1 of 1
MacBook Air
F6
I
TY
IIE
&
7
G H
Next
F7
U
* 0
8
DII
F8
J
|
(
9
F9
K
O
O

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