The Minton Company has gathered the following information for a unit of its most popular product:Direct materialsDirect laborOverhead (50% variable)Cost to manufactureDesired markup (50%)Target selling priceThe above cost information is based on 4,500 units. A foreign distributor has offered to buy 1,500 units at a price of $19 per unit. Thisspecial order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $1 per unit for thespecial order. If the special order is accepted, Minton's operating profits will increase by:Multiple Choice$3,000$3,750.$646168$ 24$4,500.

The contribution margin is calculated as net sales less variable costs. The fixed costs are not…

Answered: The Minton Company has gathered the…

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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- Your answer is partially correct. Sheridan Co. sells product P-14 at a price of $46 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $12 (75% variable). Sheridan Co. has sufficient capacity to accept a special order for 35,000 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Determine whether Sheridan Co. should accept the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ Sheridan Co. should not accept the special order.
Novak Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using Novak's normal costing process, variable costs of the special order would be $26,700 and fixed costs would be $37400. Of the fixed costs, $7.700 would be for unavoidable overhead costs, and the remainder for rent onaspecial machine needed to complete the order. What is the minimum price Novak should quote to Nash? Minimum price
Merlot Manufacturing Ltd makes three different products, the details of which are as follows: Product (code name) 167X 325Y 7422 Selling price per unit (£) 40 30 28 Variable cost per unit (£) 15 18 14 Weekly demand (units) 45 50 20 Skilled labour time per unit (hours) 3. Skilled labour time is limited to 200 hours a week. Which combination of products should be manufactured if the business is to produce the highest profit? Show your answer by filling out the table below. (Round up units of product 167X units of product 325Y units of product 742Z Enter any number or expression in each of the edit fields. 26
QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below: Alternative A Alternative B Projected revenue $ 125,000 $ 150,000 Unit-level costs 25,000 36,000 Batch-level costs 12,500 24,000 Product-level costs 15,000 17,000 Facility-level costs 10,000 12,500 What is the differential revenue for this decision? Multiple Choice $50,000 $25,000 $125,000 $150,000
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $32 per pound and costs $29 per pound to produce. Product C would sell for $61 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C? a. $32 per pound b. $29 per pound c. $61 per pound d. $23 per pound
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Galla Incorporated needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 5,000 units. Additional information is as follows: Fixed Costs (total) Variable Costs per Unit Direct materials Direct labor $ 21 Overhead 22 General and administrative 20 26 Overhead General and administrative Using the total cost method what price should Galla charge? $ 45,000 18,000
Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $32 per unit, while fixed costs are $9,504. Determine the break-even point in sales units. Round answer to the nearest whole number. units Determine the break-even point in sales units if the selling price was increased to $65 per unit. Round answer to the nearest whole number. units
Jarvis Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 35,000 units of Product E are as follows: Variable costs: Direct materials $3.00 Direct labor 1.25 Factory overhead 0.75 Selling and administrative expenses 3.00 Total $8.00 Fixed costs: Factory overhead $50,000 Selling and administrative expenses 20,000 Jarvis desires a profit equal to a 14% rate of return on invested assets of $450,000. a. Determine the amount of desired profit from the production and sale of Product E. $ 63,000 b. Determine the total costs and the cost amount per unit for the production and sale of 35,000 units of Product E. Total manufacturing costs 350,000 V Cost amount per unit 10 c. Determine the markup percentage for Product E. 18 V % d. Determine the selling price of Product E. Round your answer to two decimal places.
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $31 per pound and costs $29 per pound to produce. Product C would sell for $56 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C? Oa. $23 per pound Ob. $29 per pound Oc. $56 per pound Od. $31 per pound
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A Product B Product C Cordova currently is limited to 50,000 labor hours per month. Required: Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour. (Round your answers to 2 decimal places.) Contribution Margin Product B Ⓒ Product C O Product A Product A Product B Product C $46.00 $56.00 $86.00 22.00 12.25 38.00 8.00 8.00 2.50 4.00 $ $ $ 8.00 1.50 14.67 CM per DL hour 13.12 CM per DL hour 15.25 CM per DL hour Which product would be Cordova's first choice to produce?
Variable manufacturing costs are $120 per unit, and fixed manufacturing costs are $82,500. Sales are estimated to be 6,600 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 6,600 units and a plan to produce 7,500 units?fill in the blank 1 of 1$ b. How much would variable costing operating income differ between the two production plans?$fill in the blank 1 of 1

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