Unit-level costs Fixed costs Total cost (a) Markup (a x 0.25) $276,000 60,000 336,000 84,000 Total sales (b) $420,000 Sales price per unit (b +12,000) $ 35 Required a. Gibson has excess capacity and receives a special order for 7,000 clocks for $28 each. Calculate the contribution margin per unit. Based on this, should Gibson accept the special order? b. Prepare a contribution margin income statement for the special order

Unit-level costs Fixed costs Total cost (a) Markup (a x 0.25) $276,000 60,000 336,000 84,000 Total sales (b) $420,000 Sales price per unit (b +12,000) $ 35 Required a. Gibson has excess capacity and receives a special order for 7,000 clocks for $28 each. Calculate the contribution margin per unit. Based on this, should Gibson accept the special order? b. Prepare a contribution margin income statement for the special order

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Blossom Manufacturing incurs the following unit manufacturing cost in producing its sport earbuds: Variable Costs $50 Fixed Costs 25 A special order for 2300 units has been received. The unit price requested is $65. The normal unit price is $90. If the special order is accepted, the amount of contribution margin that will be realized assuming there is sufficient capacity to produce the special order. ($23000) $(57500) $92000 ○ $34500
Blue Company developed the following information for its product: Per Unit Sales price $90 Variable cost 63 Contribution margin $27 Total fixed costs $1,215,000 Required:Answer the following independent questions and show computations using the contribution margin technique to support your answers. How many units must be sold to break even? 2. What is the total sales that must be generated for the company to earn a profit of $60,000?
Help
If fixed costs are $1,260,000, the unit selling price is $202, and the unit variable costs are $110, the break-even sales (units) if fixed costs are increased by $43,800 is a.14,172 units b.17,006 units c.11,337 units d.21,258 units
- Cardz's total production cost is $0.60 per pack, as follows: Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Wantum - Cardz with a special order. The Hall of Fame wishes to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.40 per pack, a total of $21,600. Wantum (Click the icon to view the cost information.) Wantum - Cardz has enough excess capacity to handle the special order. Read the requirements. ..... Requirement 1. Prepare a differential analysis to determine whether Wantum - Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Variable manufacturing cost: packs x Expected in operating income Decision: - X Data table $5, Requirements Requirem the specia n- Cardz ac Start by pr Accept the special sales order. hes 1. Prepare a differential analysis to determine whether Wantum - Cardz should accept the…
Viva sells its waterproof phone case for $124 per unit. Fixed costs total $247,000, and variable costs are $37 per unit. (1) Determine the contribution margin ratio. Contribution margin Contribution Margin Ratio Numerator: (2) Determine the break-even point in dollars. Numerator: 1 1 1 1 per unit Denominator: Denominator: = Contribution Margin Ratio Contribution margin ratio = = Break-Even Point in Dollars Break-even point in dollars 0 0
Sheffield Corp. incurred the following costs for 82000 units: Variable costs Fixed costs O $15.58 O $8.70 O $8.88 O $10.80 $549400 Sheffield has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4200 for shipping. If Sheffield wants to earn $4000 on the order, what should the unit price be? Save for Later 392000 Attempts: 0 of 1 used Submit Answer
provide the answer with correct option with
Please help me with show all calculation thanku
Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration. Each unit of Product A costs $18 to produce and has a contribution margin of $9, while each unit of Product B costs $30 and has a contribution margin of $10. What is the differential revenue for this decision? Multiple Choice O O $21 $1 $13 $12
what is the answer out of multiple choice above^
Please Introduction and explanation and proper solution please without plagiarism