Hi expert please give me answer accounting questions Sunset Electronics incurs a cost of $42.75 per unit, of which $23.50is variable, to make a product that normally sells for $65.00. Aretail chain offers to buy 4,800 units at $37.25 each. Sunset willincur additional packaging and shipping costs of $2.85 per unit.Calculate the increase or decrease in net income Sunset will realizeby accepting the special order, assuming Sunset has sufficientexcess operating capacity.

Step 1: Definition of Relevant Costs and Incremental IncomeFor special orders, only relevant costs…

Answered: Sunset Electronics incurs a cost of…

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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Viking Corporation’s variable cost per unit produced is $100. Wholesaler Y offers to buy 2,000 additional units at $120 each. Wholesaler Z proposes to buy 1,500 additional units at $140 per unit. Viking has enough excess capacity to produce one but not both of the orders. Fixed costs are not affected by accepting either offer. Required: Which offer should Viking accept and why?
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It costs Bramble Company $13 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $32. A foreign wholesaler offers to purchase 980 scales at $17 each. Bramble would incur special shipping costs of $3 per scale if the order were accepted. Bramble has sufficient unused capacity to produce the 980 scales. If the special order is accepted, what will be the effect on net income?

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