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that freezers. He manufactures one standard freezer available for sale and he also manufactures custom freezers as special order for his customers. His accountant prepared the following financial information from the past year as show below. Quantity Sold Sales Material Labor Variable overhead Fixed overhead Income Special Order Sales Standard Sales Total 7,700 6,900 14,600 $959,100 $2,067,900 $220,800 $467,200 $324,300 $686,200 Material per unit $1,108,800 $246,400 $361,900 $23,100 $71,000 $406,400 East Co, has asked Mr. Amon to manufacture 770 special units for the showroom of the company. Mr. Amon is working at capacity. He cannot back out on special orders already agreed to, but he could reduce the output of his standard sales to make the special order. East Co. is willing to pay $146 for each unit. The material, labor and variable overhead costs per unit of the special order will be same unit costs as the standard sales. Mr. Amon will have tor spend $7,700 for a special device that will only be used for this special order. $20,700 $43,800 $58,300 $129,300 $335,000 $741,400 Do not enter dollar signs or commas in the input boxes. Bound all answers to the nearest whole number. a) What is the foregone contribution margin per unit of standard sales if they accept the special order? Regular selling price per unit Labor per unit Variable overhead per unit Total variable costs per unit

that freezers. He manufactures one standard freezer available for sale and he also manufactures custom freezers as special order for his customers. His accountant prepared the following financial information from the past year as show below. Quantity Sold Sales Material Labor Variable overhead Fixed overhead Income Special Order Sales Standard Sales Total 7,700 6,900 14,600 $959,100 $2,067,900 $220,800 $467,200 $324,300 $686,200 Material per unit $1,108,800 $246,400 $361,900 $23,100 $71,000 $406,400 East Co, has asked Mr. Amon to manufacture 770 special units for the showroom of the company. Mr. Amon is working at capacity. He cannot back out on special orders already agreed to, but he could reduce the output of his standard sales to make the special order. East Co. is willing to pay $146 for each unit. The material, labor and variable overhead costs per unit of the special order will be same unit costs as the standard sales. Mr. Amon will have tor spend $7,700 for a special device that will only be used for this special order. $20,700 $43,800 $58,300 $129,300 $335,000 $741,400 Do not enter dollar signs or commas in the input boxes. Bound all answers to the nearest whole number. a) What is the foregone contribution margin per unit of standard sales if they accept the special order? Regular selling price per unit Labor per unit Variable overhead per unit Total variable costs per unit

FINANCIAL ACCOUNTING
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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Do not enter dollar signs or commas in the input boxes. Bound all answers to the nearest whole number. a) What is the foregone contribution margin per unit of standard sales if they accept the special order? Regular selling price per unit Material per unit Labor per unit Variable overhead per unit Total variable costs per unit Foregone CM per unit b) What is the total relevant costs for each unit of the special order? Material per unit Labor per unit Variable overhead per unit Special device (per unit) Foregone CM per unit Total relevant costs per unit
Transcribed Image Text:Do not enter dollar signs or commas in the input boxes. Bound all answers to the nearest whole number. a) What is the foregone contribution margin per unit of standard sales if they accept the special order? Regular selling price per unit Material per unit Labor per unit Variable overhead per unit Total variable costs per unit Foregone CM per unit b) What is the total relevant costs for each unit of the special order? Material per unit Labor per unit Variable overhead per unit Special device (per unit) Foregone CM per unit Total relevant costs per unit
Shim Amon owns a small business that manufactures and sells freezers. He manufactures one standard freezer available for sale and he also manufactures custom freezers as special order for his customers. His accountant prepared the following financial information from the past year as shown below. Quantity Sales Material Labor Variable overhead Fixed overhead Income Soldi Special Order Sales Standard Sales Total 7,700 6,900 14,600 $1,108,800 $246,400 $361,900 $23,100 $71,000 $406,400 Variable overhead per unit $959,100 $2,067,900 $220,800 $467,200 $324,300 $686,200 East Co, has asked Mr. Amon to manufacture 770 special units for the showroom of the company. Mr. Amon is working at capacity. He cannot back out on special orders already agreed to, but he could reduce the output of his standard sales to make the special order. East Co is willing to pay $146 for each unit. The material, labor and variable overhead costs per unit of the special order will be same unit costs as the standard sales. Mr. Amon will have to spend $7,700 for a special device that will only be used for this special order. Total variable costs per unit $20,700 $43,800 $58,300 $129,300 $335,000 $741,400 Do not enter dollar signs or commas in the input boxes. Bound all answers to the nearest whole number. a) What is the foregone contribution margin per unit of standard sales if they accept the special order? Regular selling price per unit Material per unit Labor per unit
Transcribed Image Text:Shim Amon owns a small business that manufactures and sells freezers. He manufactures one standard freezer available for sale and he also manufactures custom freezers as special order for his customers. His accountant prepared the following financial information from the past year as shown below. Quantity Sales Material Labor Variable overhead Fixed overhead Income Soldi Special Order Sales Standard Sales Total 7,700 6,900 14,600 $1,108,800 $246,400 $361,900 $23,100 $71,000 $406,400 Variable overhead per unit $959,100 $2,067,900 $220,800 $467,200 $324,300 $686,200 East Co, has asked Mr. Amon to manufacture 770 special units for the showroom of the company. Mr. Amon is working at capacity. He cannot back out on special orders already agreed to, but he could reduce the output of his standard sales to make the special order. East Co is willing to pay $146 for each unit. The material, labor and variable overhead costs per unit of the special order will be same unit costs as the standard sales. Mr. Amon will have to spend $7,700 for a special device that will only be used for this special order. Total variable costs per unit $20,700 $43,800 $58,300 $129,300 $335,000 $741,400 Do not enter dollar signs or commas in the input boxes. Bound all answers to the nearest whole number. a) What is the foregone contribution margin per unit of standard sales if they accept the special order? Regular selling price per unit Material per unit Labor per unit
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