Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of1100 units Dalton made 21,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here.Materials cost ($10 per unit 21,000)Labor cost (59 per unit21,000)Manufacturing supplies ($1.50 21,000)Batch-level costs (20 batches at $2,425 per batch)Product level costsFacility level costsTotal costsCost per unit $716,250 21,000 $34.11Required$210,000189,00031,50049,50014,000152,2505716,250a. Sunny Motels has offered to buy a batch of 550 blankets for $24 each Dalton's normal selling price is $45 per unit. Calculate therelevant cost per unit for the special order Based on the preceding quantitative data, should Dalton accept the special order?b. Sunny offered to buy a batch of 1100 blankets for $24 per unit. Calculate the relevant cost per unit for the special order. ShouldDalton accept the special order?Note: For all requirements, round "Cost per unit" to 2 decimal places.Cost per unita Should Dalton accept the special order?b. Cost per unitb. Should Dalton accept the special order?

In a special order, relevant cost of the product is compared with the selling price of the product.…

Answered: Required a. Sunny Motels has offered to…

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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Product F is produced for $3.32 per pound. Product F can be sold without additional processing for $4.14 per pound or processed further into Product G at an additional cost of $0.41 per pound. Product G can be sold for $4.54 per pound. Prepare a differential analysis dated November 15 on whether to Sell Product F (Alternative 1) or Process Further into Product G (Alternative 2). If required, round your answer to the nearest cent. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product F (Alt. 1) or Process Further into Product G (Alt. 2) November 15 Process Further into Sell Differential Product G Product F Effect (Alternative 2) (Alternative 1) (Alternative 2) Revenues, per unit 2$ Costs, per unit Profit (loss), per unit Should Product F be sold (Alternative 1) or processed further into Product G (Alternative 2)?
Make or Buy A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $56 per unit (100 bottles), including fixed costs of $18 per unit. A proposal is offered to purchase small bottles from an outside source for $29 per unit, plus $4 per unit for freight. Prepare a differential analysis dated March 30 to determine whether the company should Make Bottles (Alternative 1) or Buy Bottles (Alternative 2), assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) March 30 Make Buy Differential Bottles Bottles Effect (Alternative 1) (Alternative 2) (Alternative 2) Unit Costs: Purchase price Freight Variable costs Fixed factory overhead Total unit costs Determine whether the company should make (Alternative 1) or buy (Alternative 2) the…
Make or Buy A restaurant bakes its own bread for a cost of $156 per unit (100 loaves), including fixed costs of $34 per unit. A proposal is offered to purchase bread from an outside source for $101 per unit, plus $12 per unit for delivery. Prepare a differential analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Bread (Alt. 1) or Buy Bread (Alt. 2) July 7 Make Bread(Alternative 1) Buy Bread(Alternative 2) Differential Effecton Income(Alternative 2) Sales price $0 $0 $0 Unit Costs: Purchase price $ $ $ Delivery Variable costs Fixed factory overhead Income (Loss) $ $ $ Determine whether the company should make (Alternative 1) or buy (Alternative 2) the…
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Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $156 per unit (100 bottles), including fixed costs of $35 per unit. A proposal is offered to purchase small bottles from an outside source for $104 per unit, plus $8 per unit for freight. a. Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Differential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) January 25 MakeBottles(Alternative 1) BuyBottles(Alternative 2) DifferentialEffect(Alternative 2) Unit costs: Purchase price $fill in the blank 54430b055ff4071_1 $fill in the blank 54430b055ff4071_2 $fill in the blank 54430b055ff4071_3 Freight fill in the blank 54430b055ff4071_4 fill in the blank 54430b055ff4071_5 fill in the blank…
Mobile Homes has an annual demand of 10,000 units for a small refrigerator. The supplier sells the units for $100 in order quantities below 124 and for $95 in order quantities above 125 units. The order cost is $5, and the annual holding cost is 10% of unit value. a) In what quantities should the item be purchased with an all-units quantity discount? b) If an incremental quantity discount schedule is in effect, how many refrigerators should Gursoy order each time an order is placed? c) Compare the cost savings for parts a) and b) with respect to the original case without discount. Which schedule is better?
Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $155 for a comforter. Misu Sheet wants to advertise the comforter as "percent markup on cost." a. What is the equivalent rate of percent markup on cost compared to the 20% markup on selling price? Note: Round your answer to the nearest hundredth percent. Rate of percent 96 b. Is this a wise marketing decision? Yes No Help Save & Exit
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Make or Buy A restaurant bakes its own bread for a cost of $164 per unit (100 loaves), including fixed costs of $33 per unit. A proposal is offered to purchase bread from an outside source for $105 per unit, plus $8 per unit for delivery. Prepare a differential analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Bread (Alt. 1) or Buy Bread (Alt. 2) July 7 Make Bread (Alternative 1) Buy Bread(Alternative 2) Differential Effecton Income (Alternative 2) Sales price $0 $0 $0 Unit Costs: Purchase price $fill in the blank d6e37f091047043_1 $fill in the blank d6e37f091047043_2 $fill in the blank d6e37f091047043_3 Delivery fill in the blank d6e37f091047043_4 fill in the blank d6e37f091047043_5…

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