Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 polos with its own design for $6.00 each. The company normally sells it shirts for $12.00 each. The company has enough excess capacity to make this order. A breakdown of the costs is as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total cost per unit $2.00 0.50 1.50 2.50 $6.50 Should Piper Rose Boutique accept the special order made by the college? Proposal to Sell Polo Shirts to College The order should be Line Item Description Differential revenue from accepting offer Differential variable costs of additional units. Differential income (loss) from accepting the offer $ Amount

Piper Rose Boutique has been approached by the community college to make special polo shirts for the faculty and staff. The college is willing to buy 4,000 polos with its own design for $6.00 each. The company normally sells it shirts for $12.00 each. The company has enough excess capacity to make this order. A breakdown of the costs is as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total cost per unit $2.00 0.50 1.50 2.50 $6.50 Should Piper Rose Boutique accept the special order made by the college? Proposal to Sell Polo Shirts to College The order should be Line Item Description Differential revenue from accepting offer Differential variable costs of additional units. Differential income (loss) from accepting the offer $ Amount

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

A4
Evaluate the expression: 0.06 12 0.06 -12(30) 150,000 The answer is: (Round to the nearest hundredth.)
How are you coming up with $9300 *0.05%? wouldn't it be $9900 x .05%?
Y0: -7800 Y1: 1700 Y2: 2600 Y3: 3100 Y4: 4200 What is the payback perion in years?
2. Compute for the present value 150 100 50 i= 10%
25. How long will it take money to double itself if invested at 6% compounded annually? A. 13.7 years В. 14.7 years С. 14.2 years D. 15.3 years
8
Find the present worth in year 0. * i = 10% 1 3 4 5 7 8 Year 200 50 70 90 1 10 130 150 170 2.
4
13 If normal earnings is 50000 JD, and expected future earnings 76000 JD discount rate 20%. Compute goodwill (step five). Select one: a. 130000 b. 125000 c. 135000 d. 140000
How did you get the 1000 and 1300?Can you please explain on how did you calculate the 22 and 20.38?
Future Value= 1000 PMT 50 N 16 Rate 4.25% Solve for Present Value=$1,085.80 how can I compute this on Excel, since it's present value I know it needs to be negative. I type it but I can't seem to get 1,085.80 as the answer