QS 25-15 Special offer LO P7Radar Company sells bikes for $480 each. The company currently sells 4,200 bikes per year and could make as many as 4,540 bikesper year. The bikes cost $275 each to make: $175 in variable costs per bike and $100 of fixed costs per bike. Radar received an offerfrom a potential customer who wants to buy 340 bikes for $450 each. Incremental fixed costs to make this order are $47,000. No othercosts will change if this order is accepted.Compute Radar's additional income (ignore taxes) if it accepts this order.IncrementalAmount per Fixed CostsUnitIncrementalIncrementalIncome from NewBusinessContribution marginIncremental income (loss) from new businessThe company should

In order to determine whether to reject or accept a project, the incremental income that could be…

QS 25-15 Special offer LO P7 Radar Company sells bikes for $480 each. The company currently sells 4,200 bikes per year and could make as many as 4,540 bikes per year. The bikes cost $275 each to make: $175 in variable costs per bike and $100 of foxed costs per bike. Radar received an offer from a potential customer who wants to buy 340 bikes for $450 each. Incremental foxed costs to make this order are $47,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Incremental Amount per Fixed Costs Incremental Income from New Business Incremental Unit Contribution margin Incremental income (loss) from new business The company should

QS 25-15 Special offer LO P7 Radar Company sells bikes for $480 each. The company currently sells 4,200 bikes per year and could make as many as 4,540 bikes per year. The bikes cost $275 each to make: $175 in variable costs per bike and $100 of foxed costs per bike. Radar received an offer from a potential customer who wants to buy 340 bikes for $450 each. Incremental foxed costs to make this order are $47,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Incremental Amount per Fixed Costs Incremental Income from New Business Incremental Unit Contribution margin Incremental income (loss) from new business The company should

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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Homework ALGO ALGO ALGO eBook Sell at Split-Off or Process Further Bozo Inc. manufactures two products from a joint production process. The joint process costs $110,000 and yields 6,000 pounds of LTE compound and 14,000 pounds of HS compound. LTE can be sold at split-off for $55 per pound. HS can be sold at split-off for $12 per pound. A buyer of HS asked Bozo to process HS further into CS compound. If HS were processed further, it would cost $42,500 to turn 14,000 pounds of HS into 4,000 pounds of CS. The CS would sell for $56 per pound. Required: 1. What is the contribution to income from selling the 14,000 pounds of HS at split-off? $130,897 X 2. Conceptual Connection: What is the contribution to income from processing the 14,000 pounds of HS into 4,000 pounds of CS? 13,500 X Should Bozo continue to sell the HS at split-off or process it further into CS? Process it further into CS Feedback Check My Work 1. Calculate revenue of HS when sold at split-off for $11. 2. Calculate revenue…
Homework i 5 A Radar Company sells bikes for $540 each. The company currently sells 4,400 bikes per year and could make as many as 4,750 bikes per year. The bikes cost $250 each to make: $160 in variable costs per bike and $90 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 350 bikes for $510 each. Incremental fixed costs to make this order are $90 per bike. No other costs will change if this order is accepted. (a) Compute the income for the special offer. (b) Should Radar accept this offer? (a) Special offer analysis O Contribution margin Income (b) The company should :: FI @ 2 W S F2 # 3 E Per Unit 80 F3 MAR 29 $ 4 R Total a F4 % 5 Autoch U 8 DII FB 1 1 alı ( DD 9 F9 ) O A F10 H J K L
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QS 10-17 (Algo) Pricing using total cost LO P6 José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $330 each. Jose believes he can produce a birdhouse for a total cost of $280 per unit, and he plans a 20% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Selling price per unit
Question 6 Technology Inc. Ltd sells desktop computer printers for $65 per unit. Unit product costs are: Direct materials $12 Direct labor 20 Manufacturing overhead 6 Total $38 A special order to purchase 10,000 desktop computer printers has recently been received from another company, and Technology Inc. has the idle capacity to fill the order. The company will incur an additional $1.50 per printer for additional labor costs due to a slight modification the buyer wants to be made to the original product. One-third of the manufacturing overhead costs are fixed and will be incurred no matter how many units are produced. $2,100 of existing fixed administrative costs will be allocated to the order as “part of the cost of doing business”.…
QUESTION 8 Grass is Greener, Inc., plans to charge its customers by the hour and to work 350 hours at $16 per hour. It expects its variable costs to be $6 per hour and fixed costs to be $600. Calculate the number of hours needed to earn $1,800 in operating income? (Round to the nearest hour)
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Exercise 18-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $330 and of each door is $760. The variable cost of each window is $190 and of each door is $480. Fixed costs are $940,800. (1) Compute the weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin (3) Compute the number of units of each rpoduct that will be sold at the break-even point
ces Exercise 2-17 (Algo) Break-Even and Target Profit Analysis [LO2-4, LO2-5, LO2-6] Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $120 per unit. Variable expenses are $84 per stove, and fixed expenses associated with the stove total $162,000 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 15,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have…
Crazy Coconut LLC has two products: Jet Boats Ski Boats $8000 $22,000 $4800 $18,000 Sales price per unit Variable cost per unit Annual fixed costs are $280,000. What is the break even amount in units, assuming that Crazy Coconut sells five jet boats for every two ski boats sold? (Round any intermediate calculations to two decimal places, and your final answer to the nearest unit.) O 12 jet boats and 7 ski boats O 59 jet boats and 23 ski boats O 7 jet boats and 12 ski boats 23 jet boats and 59 ski boats
QUESTION 10 Randall has received a special order for 4300 units of its product at a special price of $20. The product normally sells for $34 and has the following manufacturing costs: AZ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Per unit 2 3 3 2 Assume that Randall has sufficient capacity to fill the order. If Randall accepts the order, what effect will the order have on the company's short-term profit? *** If a decrease, place a sign before your answer. For example, a decrease of $1,000 would be answered -1,000.