Varto Company has 10,600 units of its product in inventory that it produced last year at a cost of $150,000. This year's model is betterthan last year's, and the 10,600 units cannot be sold at last year's normal selling price of $46 each. Varto has two alternatives for theseunits: (1) They can be sold as is to a wholesaler for $116,600 or (2) they can be processed further at an additional cost of $208,200 andthen sold for $318,000.(a) Prepare a sell as is or process further analysis of income effects.(b) Should Varto sell the products as is or process further and then sell them?(a) Sell or Process AnalysisRevenueCostsIncomeIncremental income (loss) to sell as is(b) The company should:Sell As IsProcess Further$0 $0

This question involves the relationship between the concepts of costs, selling price, and revenue in…

Answered: Varto Company has 10,600 units of its…

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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At Blossom Electronics, it costs $33 per unit ($15 variable and $18 fixed) to make an MP3 player that normally sells for $54. A foreign wholesaler offers to buy 4,520 units at $26 each. Blossom Electronics will incur special shipping costs of $1 per unit. Assuming that Blossom Electronics has excess operating capacity, indicate the net income (loss) Blossom Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Revenues Costs-Variable manufacturing Shipping Net income The special order should be Reject Order $ $ Accept Order Net Income Increase (Decrease) $ $ $ $
What is the impact on profit for the year if Nardin Outfitters accepts the special order? (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5, 400, 400 should be entered as 5, 400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Nardin Outfitters has a capacity to produce 18, 500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $ 1,550 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs $ 570 Fixed manufacturing costs 155 Variable selling and administrative costs 145 Fixed selling and administrative costs 115 Total costs $ 985 The company has received a special order for 1,800 tents at a price of $730 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $58 per tent. The special…
The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $6,500, they could be sold for $19,900. Alternatively, the keyboards could be sold “as is” for $8,400. What is the net advantage or disadvantage of re-working the keyboards?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Product F is produced for $3.42 per pound. Product F can be sold without additional processing for $4.07 per pound or processed further into Product G at an additional cost of $0.43 per pound. Product G can be sold for $4.42 per pound. Prepare a differential analysis dated November 15 on whether to Sell Product F (Alternative 1) or Process Further into Product G (Alternative 2). If required, round your answer to the nearest cent. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Product F (Alt. 1) or Process Further into Product G (Alt. 2)November 15 SellProduct F(Alternative 1) ProcessFurther intoProduct G(Alternative 2) DifferentialEffect(Alternative 2) Revenues, per unit $fill in the blank 15afe8f7b050fa7_1 $fill in the blank 15afe8f7b050fa7_2 $fill in the blank 15afe8f7b050fa7_3 Costs, per unit fill in the blank 15afe8f7b050fa7_4 fill in the blank 15afe8f7b050fa7_5 fill in the blank 15afe8f7b050fa7_6…
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Alberto Technologies, manufacture and sells an electronic control device for $297. It has costs of $231 to manufacture it. A competitor is bringing a new electronic control device to market that will sell for $253. Marketing manager at Alberto believes it must lower the price to $253 to compete in the market for electronic control device. Marketing manager believes that the new price will cause sales to increase by 12%, even with a new competitor in the market. Alberto's sales are currently 6,000 units per year. What is the target cost per unit if the target operating income is 25% of sales
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