Snider, Inc., which has excess capacity, received a special order for 4, 000 units at a price of $\S 20$ per unit. Currently, production and sales are anticipated to be 10, 000 units without considering the special order. Budget information for the current year follows. Sales $\S 196,000 $ Less: Cost of goods sold 104, 000 Cost of goods sold includes $\S 30,000 $ of fixed manufacturing cost. If the special order is accepted, the company's income will increase by?

Snider, Inc., which has excess capacity, received a special order for 4, 000 units at a price of $\S 20$ per unit. Currently, production and sales are anticipated to be 10, 000 units without considering the special order. Budget information for the current year follows. Sales $\S 196,000 $ Less: Cost of goods sold 104, 000 Cost of goods sold includes $\S 30,000 $ of fixed manufacturing cost. If the special order is accepted, the company's income will increase by?

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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Business Solutions's second-quarter 2020 fixed budget performance report for its computer furniture operations follows. The $159,370 budgeted expenses include $106,650 in variable expenses for desks and $18,720 in variable expenses for chairs, as well as $34,000 fixed expenses. The actual expenses include $35,400 fixed expenses. List fixed and variable expenses separately. Desk sales (in units) Chair sales (in units) Desk sales. Chair sales Total expenses Income from operations Desk sales Chair sales Variable expenses Contribution margin Fixed Budget Actual Results Variances 135 72 $170, 100 42,480 159,370 $ 53,210 Fixed expenses income from operations 141 80 $176,250 48,400 168,050 $ 56,600 Prepare a flexible budget performance report that shows any variances between budgeted results and actual results. $6,150 F 5,920 F 8,680 U $3,390 F BUSINESS SOLUTIONS Flexible Budget Performance Report For Quarter Ended June 30 Flexible Budget Actual Results Variance Fav/Unt. Unfavorable Favorable…
Silverstone is a company that manufactures and sells electrical engines for electrical trucks. For its 2023 budget, Silverstone estimates that unit selling price is $10,000, variable manufacturing cost per engine is $5,000. Fixed costs are $600,000 per month. Sales team incurs a flat salary of $8,000 per month, which is already included in monthly fixed cost budget. On top of that, the sales commission is 5% of selling price. Required: a. What is the contribution margin per engine? b. What is the breakeven point in units and in revenues each month? (Show your calculation steps). C. At current price level, Silverstone expects to sell 140 units of its engine. If Silverstone lowers the price by 10%, the marketing team predicts that the sales will increase to 170 units. Is it a good decision? Using the result to illustrate why. d. What is the operating leverage level if Silverstone sells 150 units per month at current price?
Joseph Daze Growers accumulated actual MOH costs this year of $48,480, even though it had budgeted $55,460 of MOH. It allocates MOH based on the direct labor hours of its workers. At the beginning of the year, it budgeted for 9,400 hours but ended up using 10,100 hours this year.Determine the following. (Round budgeted and actual MOH rate answers to 2 decimal places, e.g 2.25.) (a) The budgeted MOH rate $enter a dollar amount per hour rounded to 2 decimal places /hr. (b) The actual MOH rate $enter a dollar amount per hour rounded to 2 decimal places /hr. (c) Applied MOH under actual costing $enter a dollar amount (d) Applied MOH under normal costing $enter a dollar amount
Crompton produces a product that sell at wholesale for 2.60 per unit. Budgeted production in both 2018 and 2019 was 3,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations: 2018, 2019 Units sold =2,500, 3,200 Units produced 3,000 3,000 Costs: Variable factory overhead per unit 0.65, 0.65 Fixed factory overhead 1,290, 1,290 Variable marketing per unit 0.80, 0.80 Fixed Selling and Administrative 650, 650 Compute variable costing operating income for the 2019.
For 2023, the estimated (budgeted) cost and revenue information of Şam Company is provided below: Sales units = 200000 units, Selling price per unit = 15 dollars, Number of units produced = 220.000 units, DM = $3 per unit, DL = $1 per unit, Var MOH = $2 per unit, Fixed MOH = $440.000, Var Selling and Adm Exp = $4 per unit, Fixed S&A Exp = $60.000. A.) Prepare CVP Income Statement. B.) Calculate BEP in Units and BEP in dollars. C.) What is the margin of safety ratio of Şam Company? D.)Calculate the degree of operating leverage and explain what happens to NI if sales increase 10% and decrease 5%.
1. Yas corporation is budgeting sales of 53,000 units of product Nous for October 2000. The manufacture of one unit of Nous requires 4 kilos of chemical Loire. During October 2021, Yas plans to reduce the inventory of Loire by 50,000 kilos and increase the finished goods inventory of Nous by 5,000 units. There is no Nous work in process inventory.How many kilos of Loire is Yas budgeting to purchase in October 2021?
Sohar Company has 9,000 units in beginning finished goods. The sales budget shows expected sales to be 36,000 units. If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods? Select one: O a. 27,000. O b. 3,000 Oc. None of the answers are correct O d. 15,000. e. 9,000.
Accepting Business at a Special Price Power Serve Company expects to operate at 82% of productive capacity during May. The total manufacturing costs for May for the production of 31,980 batteries are budgeted as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total manufacturing costs The company has an opportunity to submit a bid for 3,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses. $458,800 168,700 47,278 94,000 $768,778 What is the unit cost below which Power Serve Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit
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Wharton Company has the capacity to produce 50,000 units per year. The company sells each unit for $125. Budgeted information is as follows: Revenues $5,612,000 Direct materials $1,932,000 Direct labor 552,000 Manufacturing overhead (fixed) 276,000 Manufacturing overhead (variable) 552,000 3,312,000 Total $2,300,000 A special order has been received for 5,000 units to be sold for $80 per unit. The company would incur an additional $60,000 in total fixed costs in order to lease a special machine in order to make a slight modification to the original product. Should the company accept the special order? A. Yes, the revenue will increase substantially. B. No, total costs would increase by $303,600. C. Yes, profit will increase by $36,400. D. No, accepting this order would decrease profits to $2,263,600.
During the current year, Mute Corporation expected to sell 24,600 telephone switches. Fixed costs for the year were expected to be $12,147,000, the unit sales price was budgeted at $3,500, and unit variable costs were budgeted at $1,680. Mute's margin of safety (MOS) in units is Multiple Choice O O 17,925. 21,705. 23,015. 19,095. 17,795.