Question:(Account) 21-59A company has a capacity of 200,000 units. They are currentlyproducing and selling 180,000 units at $100 per unit. The cost of aunit at the present production level is as follows:Per unitDM$ 38DL$ 22Variable OH$ 12$ 18$ 90Fixed OHTotalAn order for 20,000 units has just been received from a foreigncompany at a price of $84 per unit. Freight costs of $4 per unitwould be required.What will the incremental profit/loss be on this order if they chooseto accept it?

Step 1: Incremental RevenueThe revenue from the special order is: Revenue=Order…

Answered: Question:(Account) 21-59 A company has…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 13E

See similar textbooks

Similar questions

A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $171. A special order from a foreign company has been received for 5000 units at $135 a unit. In order to fulfill the order, 2800 units of regular sales would have to be foregone.The opportunity cost associated with this order is $478800. $378000. $268800. $210000.
Porvide answer in table format Cobe Company has already manufactured 19,000 units of Product A at a cost of $25 per unit. The 19,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $230,000 total additional cost and be converted into 5,500 units of Product B and 11,000 units of Product C. Per unit selling price for Product B is $107 and for Product C is $56. 1. Prepare an analysis that shows whether the 19,000 units of Product A should be processed further or not?
Please do not give image format
X Ltd., having an installed capacity of 1,00,000 units of a product is currently operating at 70% utilisation. At current levels of input prices, the FOB unit costs (after taking credit for applicable export incentives) work out as follows : Capacity utilisation FOB unit costs per cent 70 97 80 92 90 87 100 82 The Company has received three foreign offers from different sources as under : Source A Source B 5,000 units at $55 per unit FOB 10,000 units at $52 per unit FOB 10,000 units at $51 per unit FOB Source C Advise the company as to whether any or all the export orders should be accepted or not.
Marks Co. has a capacity of 100,000 units. They are currently producing and selling 90,000 units at $50 per unit. The cost of a unit at the present production level is as follows: Direct materials Direct labor Variable overhead Fixed overhead Per unit $19 11 6 9 $45 An order for 10,000 units has just been received from a foreign company at a price of $42 per unit. Freight costs of $2 per unit would be required. (A) Should Marks accept the order? Why or why not? (B) Assume the order was for 12,000 units. Should Marks accept the order? Why or why not?
uod cz 1.The cost to produce one unit of the product is: Material $ 13.00 Labor $8.00 Variable cost $7.00 Fixed expenses $ 18.00 Total fixed expenses: $ 500,000 The company's normal capacity is 100,000 units. The figures given above are for 80,000 units. The company has received a special offer for 20,000 units for a price of $ 36 per unit from a foreign customer. Advice the manufacturer on whether the order should be accepted or not. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 3 (12pt) Qi:公 Arial vE - E T TTTT Paragraph v T T S T HTML CSS O fr Mashups
Which of the following amount?
12 Division P of the Nyers Company makes a part that can either be sold to outside customers or transferred internally to Division Q for further processing. Annual data relating to this part are as follows: Annual production capacity 80,000 units Selling price of the item to outside customers $35 Variable cost per unit $23 Fixed cost per unit $5 Division Q of the Nyers Company requires 15,000 units per year and is currently paying an outside supplier $33 per unit. If outside customers demand only 50,000 units per year, then what is the lowest acceptable transfer price from the viewpoint of the selling division? A. $35 В. $33 C. $28 D. $23 E. None of the above
Subject :- Account
Bueno Manufacturing has received an offer from Chido Corp. to purchase 2,000 units of its standard product at a price of $39 per unit. Bueno's current production and sales is as follows: Units produced & sold annually 10,000 Unit production capacity 14,000 Per unit Regular sales price $ 55.00 Direct Materials 20.00 Direct Labor 10.00 Variable Overhead 6.00 Fixed Overhead 2.00 a. What is the short- term change in Operating Income if Chido's special offer is accepted? b. Suppose that Bueno is operating at full capacity producing and selling 14,000 units per year. What is the Opportunity Cost if Chido's special offer is accepted? c. What non-financial factors should Bueno consider in deciding whether to accept/reject Chido's offer?
Please provide correct solution
Please provide Solutions

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS