QUESTION 6Wok Around the Clock, Inc., sells specialty woks. In the current year it expects to incur $810,000 in variable costs and $140,000 in fixed costs tomake and sell 10,000 woks at $100 each.If Wok Around the Clock accepts a special order from Hard Wok Cafe to purchase 1,000 woks at $75. Wok Around the Clock will also have to pay$1,200 in shipping costs to deliver the special order. How much would it make or lose on this special order?ENTER A LOSS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -1,000QUESTION 7Daffy Duct, Inc., has the capacity to produce 12,000 cases of duct tape per year but only produces and sells 10,000 cases at $50 per case. Thedirect materials equals $130,000, direct labor equals $110,000, and overhead equals $100,000. Sixty percent of the manufacturing overhead isvariable. The forty percent of fixed overhead is allocated equally to all products.Dewey, Cheatum & Howe has offered to purchase 1,000 cases but at a reduced price of $40 per case. What is the additional operating income(loss) of accepting this offer?ENTER NEGATIVE NUMBERS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -1,000QUESTION 8Toy Story, Inc., has the capacity to produce 100,000 toys per year but only produces 80,000 toys per year. The sale price is $10, the variable costis $7 and allocated overhead equals $80,000 per year. Company B offers to buy an additional 18,000 toys but is only willing to pay $5 per toy.What is the additional operating income (loss) of accepting the offer?ENTER NEGATIVE NUMBERS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -10,000

Special order is one time order which is received and the special order is only accepted if the…

Answered: QUESTION 6 Wok Around the Clock, Inc.,…

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 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
8.5 Special order pricing Marston Manufacturing has an annual capacity of 85,000 units per year. Currently, the company is making and selling 78,000 units a year. The normal sales price is $120 per unit, cariable costs are $90 per unit, and total fixed expenses are $2,000,000. an out of state distributor has offered to buy 12,000 units at $105 per unit. Marston's cost structure should not change as the result of this special order. REQUIRED By how much will Marstonsincome change if the company accepts this order?
SOLVE STEP BY STEP IN DIGITAL FORMAT DONT USE CHATGPT The papelitos company manufactures and sells personalized thermoses. Currently, 10,000 units are sold per year at a price of $320 per unit. Fixed costs are $40,000 monthly. Variable costs are $210 per unitYou are asked to calculate the number of units that need to be sold per month to reach the break-even point.Interpret the resultCalculate the units you must sell per month to obtain a profit of $14,000 per month.Perform the respective verification of the two previous points.
Chapter 7 Problem Solution 1 Please select the correct answer and solve and explain. "Goodstone Tire Corp sells tires for $90 each. Per unit costs associated with producing and selling the tires are: Direct Materials $35 Direct Labor $10 Factory Overhead $20 The variable portion of the factory overhead is $8 per unit. A foreign company wants to purchase 1,000 tires for $65 each. Assuming Goodstone has excess capacity: 1) The incremental profit from special order will be $12,000 2) The incremental loss from the special order will be $25,000 3) The will be no incremental loss or profit from the special order
Stone Manufacturing sells a marble slab for $1.500 Fixed costs are 130,000, while the variable costs are $500 per wish. The company currently plans to sell 100 sise this month. What is the margin of safety assuming 75 slabs are actually sold? (Round a unit calculations up to the rarest whole nutter) A $30,000 B. $102,000 C. $64,500 D. $47,000 Only typing answer Please explain step by step
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Homework Saved Help Stuart Company makes a product that sells for $33 per unit. The company pays $13 per unit for the variable costs of the product and incurs annual fixed costs of $184,000. Stuart expects to sell 22,200 units of product. Required Determine Stuart's margin of safety expressed as a percentage. (Round your percentage answers to 2 decimal places (i.e., 0.2345 should be entered as 23.45).) Margin of safety
4 Homework Saved Hel Munoz Company makes a product that sells for $31 per unit. The company pays $20 per unit for the variable costs of the product and incurs annual fixed costs of $107,800. Munoz expects to sell 21,700 units of product. Required Determine Munoz's margin of safety expressed as a percentage. (Round your percentage answers to 2 decimal places (i.e., 0.2345 should be entered as 23.45).) Margin of safety % ...
The Tick Tock Clock Company sells a particular clock for $75. The variable costs are $15 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 355 clocks, what effect would the sale of additional 75 clocks have on operating income? Explain your answer The sale of an additional 75 dlocks would aller an. operating income by the amount of The total effect would amount to 4
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 2 Luna Sea Sushi, Inc. has total costs of $120,000 when it sells 40,000 units. If total fixed costs are $40,000, what is variable cost per unit?
Golden Gate Novelties (GGN) sells souvenir key chains at the local airport. GGN charges $12.00 per chain. The variable cost for a chain, including the wholesale cost of the chain, packaging, the commission paid to the airport operator, and so on, is $10.40. The annual fixed cost for GGN is $15,000. Required: a. How many cases must Golden Gate Novelties sell every year to break even? Note: Do not round intermediate calculations. b. The owner of GGN believes that the company can sell 12,500 chains a year. What is the margin of safety in terms of the number of chains? a. Break-even point b. Margin of safety chains chains

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