Provide answer for the following Question Question:Parker Plumbing has received a special one-time order for 1,400 faucets (units) at $3 per unit. Parker currently produces and sells 5,200units at $4.0 each. This level represents 75% of its capacity. Production costs for these units are $2.5 per unit, which includes $1 variablecost and $1.5 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,000 with a zero salvage value.Management expects no other changes in costs as a result of the additional production. If Parker wishes to earn $950 on the special order,the size of the order would need to be:

To analyze this problem, break down each part:Order Details:Parker Plumbing received a special order…

Answered: Question: Parker Plumbing has received…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 3PB: Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in...

See similar textbooks

Similar questions

Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year was: At the start of the current year, Marcotti received a special order for 15,000 cupcakes to be sold for $1.10 per cupcake. To complete the order, the company must incur an additional $700 in total fixed costs to lease a special machine that will stamp the cupcakes with the customers logo. This order will not affect any of Marcottis other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? (Show your work.)
carefully check details and give nas
need help with calculation and provide correct option
Phillips HVAC and Plumbing has received a special one-time order for 1,500 faucets (units) at $5 per unit. Phillips currently produces and sells 7,500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $1.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,000 with a zero salvage value. Phillips management expects no other changes in costs as a result of the additional production. Should the Phillips accept the special order? 1)No, because additional production would exceed capacity. 2)Yes, because incremental costs exceed incremental revenues. 3)Yes, because incremental revenue exceeds incremental costs. 4)No, because incremental costs exceed incremental revenue. 5)No, because the incremental revenue is too low.
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces and sells 7,500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $1.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,000 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,250 on the special order, the size of the order would need to be:
NEED ANSWER
I need Help
need solution please
Theta company has received a special one-time order for 1,500 light fixtures (units) at P15 per unit. It currently produces and sells 7,500 units at 16.00 each. This level represents 75% of its capacity. Production costs for these units are P19.50 per unit, which includes 13.00 variable cost and 6.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of P725 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If the company wishes to earn 1,375 on the special order, the size of the order would need to be: 1) 2,100 units. 2) 4,200 units. 3) 100 units. 4) 1,050 units. 5) 935 units.
Special Order Plastic Pipe Company manufactures a variety of pipes, and has received a special one-time-only order from a new customer. Plastic Pipe has sufficient idle capacity to accept the special order to manufacture 1,200 16-foot lengths of pipe at a price of $11.00 per pipe. Plastic Pipe's normal selling price is $12.00 per 16-foot length. Variable manufacturing costs are $7.00 per pipe and fixed manufacturing costs are $1.00 per pipe. Plastic Pipe's variable selling expense for its normal line of pipes is $0.50 per pipe. What would the effect on Plastic Pipe's operating income be if the company accepted the special order? Plastic Pipe's operating income would increase ♦ by $4,200 Xif the order was accepted.
I want the correct answer

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS