Wallis Company produces circuit boards in a foreign country that imposes a 15 percent VAT. This year, Wallis manufactured 8.2 million boards at a $6.40 material cost per unit. Wallis's labor and overhead added $1.28 to the cost per unit. Wallis sold the boards to various customers for $9.60 per unit for a net profit of $1.92 per unit. Required: How much VAT does Wallis Company owe? Note: Enter your answer in dollars not in millions of dollars. VAT $ 11,808,000
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- Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,100 golf discs is: Materials Labor Variable overhead Fixed overhead Total Crane also incurs 6% sales commission ($0.42) on each disc sold. McGee Corporation offers Crane $5.00 per disc for 4,600 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Crane. If Crane accepts the offer, it will incur a one-time fixed cost of $4,840 due to the rental of an imprinting machine. No sales commission will result from the special order. Assume there is sufficient capacity to accommodate the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Materials Labor Variable overhead Cost of equipment rental Net income $ 7,852 21,744 14,496 30,502 $74,594 (b) Crane should 69 $ $ Should Crane accept the special…Lopez Corporation sells a product for $18 per unit, and the standard cost card for the product shows the following costs Direct material $1 Direct labor 2 Overhead (80% fixed) 7 Total $10 Refer to Lopez Corporation. Lopez received a special order for 1,000 units of the product. The only additional cost to Lopez would be foreign import taxes of $1 per unit. If Lopez is able to sell all of the current production domestically, what would be the minimum sales price that Lopez would consider for this special order? Select one: a. $19.00 b. $11.00 c. $5.40 d. $18.00A glass company produces paperweights for export. The paperweights were sold at P125 each which does not include shipping cost of P20 per paperweights. These paperweights are then marked-up in Japan of P560 per paperweights. The workers in the factory are paid, on the average, the equivalent of P420 per day and it is estimated that the average daily output per worker is 70 paperweights. The cost of the material is estimated at P44 per paperweigh ts. The fixed cost for the operation is P6M a year. The company operates 288 days a year. 1. What is the break-even point?
- Spartan Corporation, a U.S. company, manufactures green eyeshades for sale in the United States and Europe. All manufacturing activities take place in Michigan. During the current year, Spartan sold 8,400 green eyeshades to European customers at a price of $ 10.40 each. Each eyeshade costs $4.20 to produce. For each independent scenario, determine the source of the gross income from sale of the green eyeshades. b. Half of Spartan's production assets are located outside the United States.Tambi Corporation produce its product which requires an input for $72,30 per kilogram from the supplier. By paying cash, the corporation get 5% discount. Shipping cost amounted for $5,75 per kilogram. Receiving cost is $0,85 per kilogram. Each unit of output requires 0,45 kilogram of this input. The allowance for the waste and spoilage is 0,08 kilogram of this input for each unit. The allowance for the reject is 0,14 kilogram from each output.Based on this information, what is the standard price per kilogram of this input? Select one: a. $75,285 b. $67,555 c. $73,450 d. $70,655GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for each photocopy made. GEM made 5,000 copies and paid a total of $600 in January. In April, they paid $400 for 3,000 copies. a) What is the variable cost per copy if GEM uses the high-low method to analyze costs? b) How much would GEM Ltd pay if it made 7,500 copies?
- Sheridan Company incurs a cost of $36 per unit, of which $20 is variable, to make a product that normally sells for $57. A foreign wholesaler offers to buy 7,000 units at $30 each. Sheridan will incur additional costs of $2 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Sheridan will realize by accepting the special order, assuming Sheridan has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45)) Revenues Costs Net income $ $ Reject Sheridan company should LA $ LA Should Sheridan Company accept the special order? ✓the special order. Accept $ LA LA $ Net Income Increase (Decrease) A SUPPGoodstone Tire Corporation sells tires for $100 each. Per unit costs associated with producing and selling the tires are: Direct materials $35 Direct labor 10 Factory overhead 20 Selling and administrative 15 The variable portion of the factory overhead is $8 per unit. A foreign company wants to purchase 10,000 tires for $70 each. The order would not require any selling or administrative costs. The purchaser will pay the shipping costs, but Goodstone will have to pay a $100,000 inspection fee in order to be able to make the foreign sale. Accepting the special order will not affect current sales or production. What effect would accepting the special order have on Goodstone's net operating income?CVPAustin Automotive sells an auto accessory for $180 per unit. The company’s variable cost per unit is $30 for direct material, $25 per unit for direct labor, and $17 per unit for overhead. Annual fixed production overhead is $52,360, and fixed selling and administrative overhead is $35,336. If Austin Automotive wants to earn a pre-tax profit of $72,576, how many units must the company sell?
- Guadalupe Olayo produces grandfather clocks. Each grandfather clock normally sells for $1,500. The following manufacturing cost information per clock is available: Direct materials are $200, labor is $600, variable overhead is $50, and fixed overhead is $40 (based on planned production for the year of 1,200 clocks). Commissions are 10% of selling price, and fixed selling and administrative costs are $70,000. Guadalupe’s tax rate is 25%. A European company has asked Guadalupe to accept a special order for 400 clocks. Due to some minor design changes, the material and labor costs for the special order clocks would increase by 25%. Another production run would have to be scheduled for the special order, since the clocks are different from the regular clocks, at a cost of $2,200. In addition, Guadalupe would have to hire a temporary clerk to process the ISO and export paperwork for shipping to Europe, at a cost of $600. Commissions will be paid at the rate of 5% of the special order…Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed costs are 4,000,000 p per year. The variable cost of each component is 2,000 p, and the components are sold for 3,000 peach. The company sold 5,000 components during the prior year. (p denotes the peso, Argentina's national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina's peso was worth 0.104 U.S. dollar. In the following requirements, ignore income taxes.) Required: 1. Compute the break-even point in units. 2. What will the new break-even point be if fixed costs increase by 10 percent?Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $360 for 5,000 copies and $280 for 3,000 copies, how much would Markson pay if it made 7,500 copies?