Marie Company’s unit manufacturing costs are: Variable Cost P50 Fixed Cost 25 A special order for 2,000 units has been received from a foreign company. The unit selling price requested is P55. The normal unit selling price is P80. If the order is accepted, unit variable costs will increase by P2 for additional freight costs. Marie has sufficient capacity to accommodate the special order. How much is the incremental profit or loss if the order is accepted?

Marie Company’s unit manufacturing costs are: Variable Cost P50 Fixed Cost 25 A special order for 2,000 units has been received from a foreign company. The unit selling price requested is P55. The normal unit selling price is P80. If the order is accepted, unit variable costs will increase by P2 for additional freight costs. Marie has sufficient capacity to accommodate the special order. How much is the incremental profit or loss if the order is accepted?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...

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Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Their sales mix s reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $25,000 per year. What are total variable costs for Morris with their current product mix? Calculate the number of units of each product that will need to be sold in order for Morris to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.
Sheffield Corp. incurred the following costs for 82000 units: Variable costs Fixed costs O $15.58 O $8.70 O $8.88 O $10.80 $549400 Sheffield has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4200 for shipping. If Sheffield wants to earn $4000 on the order, what should the unit price be? Save for Later 392000 Attempts: 0 of 1 used Submit Answer
Swifty Corporation’s unit manufacturing cost is: Variable Costs $50 Fixed Costs 25 A special order for 2000 units has been received from a foreign company. The unit price requested is $54. The normal unit price is $92. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be $34000. $(42000). $(46000). $4000.
A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5100 units at $135 a unit. In order to fulfill the order, 2900 units of regular sales would have to be foregone.The incremental profit (loss) from accepting the order would be $(99000). $45000. $(153000). $210000.
Use this information for Stryker Industries to answer the question that follow.Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $20 Unit manufacturing costs: Variable 11 Fixed 1 What is the amount of income or loss from the acceptance of the offer?
Required:(a) GEM has an opportunity to sell 10 000 units to an overseas customer. Import duties and other special costs associated with this order would total $42 000. The only selling costs that would be associated with the order would be a shipping cost of $9.00 per unit. What would be the minimum acceptable unit price for GEM to consider this order? (hint: GEM would not accept the order if it would reduce the company’s profit) (b) The company has 200 units of Flicks on hand that were produced two months ago. Due to blemishes on the units, it will be impossible to sell these units at the normal price. If the company wishes to sell them through regular sales channels, what would be the relevant cost for setting the minimum price? Explain. (c) “All future costs are relevant in decision making.” Do you agree? Explain.
A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $167. A special order from a foreign company has been received for 5000 units at $135 a unit. In order to fulfill the order, 2000 units of regular sales would have to be foregone.The opportunity cost associated with this order is $184000. $334000. $150000. $270000.
what is the answer out of multiple choice above^
Concord Corporation incurred the following costs for 66000 units: Variable costs $396000 Fixed costs 392000 Concord has received a special order from a foreign company for 3500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4900 for shipping.If Concord wants to break even on the order, what should the unit sales price be? $11.94 $7.40 $6.00 $13.34
Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $13. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the market-based transfer price? • Variable cost per unit $6 • Fixed cost per unit 1.65 • Division B sales price of Component X 14.50
1. The Selling Division’s unit sales price is P20 and its unit variable cost is P8. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales is 10,000 units. What is the minimum transfer price that the Selling Division would be willing to accept if 3,000 units will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50. _____________________2. The Selling Division’s unit sales price is P20 and its unit variable cost is P8. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales are 7,000 units. What is the Selling Division’s opportunity cost per unit from selling 3,000 units to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50 ______________________3. The Selling Division’s unit sales price is P20 and its unit variable cost is P8. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales is…
A company's unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $165. A special order from a foreign company has been received for 4100 units at $135 a unit. In order to fulfill the order, 2400 units of regular sales would have to be foregone. The incremental profit (loss) from accepting the order would be Select answer from the options below $157500. S (76500). $(123000). $30000.