It costs Crane Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1500 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Crane has sufficient unused capacity to produce the 1500 scales. If the special order is accepted, what will be the effect on net income? $4500 decrease $3000 increase $22500 increase $3000 decrease

Q: Sugar Corporation manufactures specialized sugar cubes that are used in tea. The company has a sales…

A: Income statement is a financial statement that shows profitability, total revenue and total…

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: Kent Co. manufactures a product that sells for $50.00 Fixed costs are $260,000 and variable costs…

A: The break-even sales are the sales where business earns no profit or loss during the period. The…

Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…

A: Formula: Contribution margin per unit = Sales price per unit - Variable cost per unit

Q: Company XYZ produces and sells headphones. The company has total fixed costs of $112,000. Each…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: Viking Corporation’s variable cost per unit produced is $100. Wholesaler Y offers to buy 2,000…

A: Special order are those orders that are not frequent in nature. They are orders placed rarely by…

Q: Sheridan Company incurred the following costs for 54000 units: Variable costs $324000 Fixed costs…

A: Variable cost: These are those cost that changes with the changing level of output, i.e. higher the…

Q: CVP Drill #8 Shultz Company sells slides for $400 each. If the company's fixed costs total $300,000,…

A: BREAKEVEN POINT Break Even means the volume of production or sales where there is no profit or loss.…

Q: Holmes Company has already spent $90,000 to harvest peanuts. Those peonuts can be sold os is for…

A: Process Further analysis can be implemented if additional revenue earned is greater than additional…

Q: Use this information for Stryker Industries to answer the question that follow. Stryker Industries…

A: Income from the offer acceptance = Units * ( Sale Price - Variable Manufacturing Cost)

Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit,…

A: Target sales = (Fixed Cost-Desired Income)/contribution per unit

Q: Ahngram Corp. has 1000 carton of oranges that cost $20 per carton in direct costs and $19.00 per…

A: OPPORTUNITY COSTOpportunity cost is the value of alternative foregone by adopting a particular…

Q: It costs a company 14 of variable and 6 of fixed cost to produce a product Z200 that sells for 35. A…

A: Fixed cost is not considered whenever there is unused capacity.

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

Q: Piit Company currently sells 1,0 ariable costs are P1.50. A discou COL anits of product M. The…

A: Variable Cost - The total cost of production of a good comprises of the total fixed cost of…

Q: It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production…

A: Relevant cost refers to those cost which is relevant for choosing the best alternative whereas…

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A: Selling price = $ 90 Variable cost = $ 48 Fixed cost = $600,000   Contribution per unit = Selling…

Q: At Bargain Electronics, it costs $28 per unit ($15 variable and $13 fixed) to make an MP3 player…

A: Step 1: Workings:

Q: Please correct answer

A: Step 1: Introduction to the Operating Income:The monetary advantage that arises to a business entity…

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A: Break- even point is the point where there is no profit or loss. If we sell anything beyond this…

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A: The breakeven is the level of production at which a product's costs equal its revenues. When the…

Q: It costs Sheridan Company $9 of variable costs and $5 of fixed costs to produce its product at full…

A:

Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…

A: Formula: Profit = Revenues - Expenses.

Q: At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player…

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

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A: The answer is option (e.) [i.e OMR 3,000 Increase] Refer step 2 for explanation

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

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…

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

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Q: It costs HHI Company $7 of variable costs and $3 of fxed costs to produce its product at full…

A: Variable cost per unit for the offered 3,000 units = $7 + $2.50 = $9.50 . Even when company is not…

Q: A company's unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit…

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

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A: Profit = Contribution margin - Fixed costs where, Contribution margin = Sales - Variable costs

Q: Variable costs Fixed costs $540000 392000 Marigold has received a special order from a foreign…

A: Special order costing is primarily used when a company receives a request for a product or service…

Q: Solve this problem

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A: Net income is the income which is computed by diminution of operating cost from the gross profits.

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Q: d accepts the special order, the effect on income w

A: Particulars Normal sale Special order Differential revenue/(costs) Sales 400000 units @$40 =…

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A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

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: Calculate break-even point and sales required to earn target operating income in dollars. E6.20 (LO…

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Q: Determine the break- point under ne 6,000 under the new and old

A: Break Even point defines where the company meets no profit no loss. Where the net earning of the…

Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sells for $90, with…

A: Formula: Unit contribution margin = Sales price per unit - variable cost per unit

Q: Marigold Corp. incurred the following costs for 52000 units: Variable costs Fixed costs $312000 O…

A: The variable costs change with change in the level of production. Fixed cost does not change with…

Q: Night Shades Inc. (NSI) manufacturers biotech sunglasses. These sunglasses sell for $150 each, and…

A: breakeven formula: break even=fixed costselling price - variable cost

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A: Relevant cost for the special order is the cost which differs from the alternatives. Fixed cost for…

Q: CVP Drill #6 Shultz Company sells slides for $400 each. If the company's fixed costs total $300,000,…

A: The breakeven units represent the units to be sold to recover the total cost. When a company sells…

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.