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

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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?
Question : Rainbowbird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Rainbowbird currently produces and sells 75,000 units at $7.00 each. This level represents 80% of its capacity. Production costs for these units are $3.50 per unit, which includes a $2.25 variable cost and $1.25 fixed cost. If Rainbowbird accepts this additional business, the effect on net income will be?
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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.
Swifty Corporation’s unit manufacturing cost is: Variable Costs $50 Fixed Costs 25 A special order for 2000 units has been received from a foreign company. The unit price requested is $54. The normal unit price is $92. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be $34000. $(42000). $(46000). $4000.
A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5100 units at $135 a unit. In order to fulfill the order, 2900 units of regular sales would have to be foregone.The incremental profit (loss) from accepting the order would be $(99000). $45000. $(153000). $210000.
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2.3 REQUIRED Calculate the annual economic order quantity from the information provided below. INFORMATION The following details have been supplied by Yolo Limited for one of its products: Monthly sales 6 000 units Carrying costs as a percentage of the unit purchase price 10% Purchase price per unit R50 Cost of placing an order R20
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

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