What is the incremental cost associated with this special order

Q: Jim's Bait Shop makes their own fishing lures. They buy the materials necessary to make the lures…

A: Jim Bait's Costing is as follows : Direct Material Cost Includes Cost of One Pound of Material =…

Q: Old Man Joe sells playlists online. The projected current year a sales volume is 500,000 playlists.…

A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…

Q: Buffalo Ltd. uses 2,250 metres of fine gage brass each year. Brass wire costs $12 per metre,…

A: The economic order quantity: The economic order quantity refers to the optimal quantity of inventory…

Q: Damato has the practical capacity to produce 15,000 Holiday Panettone (an Italian sweet bread).…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Cobe Company has manufactured 205 partially finished cabinets at a cost of $51,250. These can be…

A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…

Q: Old Man Joe sells playlists online. The projected current year a sales volume is 200,000 playlists.…

A: Income statement is one of the financial statements of the firm, which is describe the revenues as…

Q: Racer Industries has fixed costs of $900,000. The selling price per unit is $180, and the variable…

A: Given: Fixed Cost = $900,000 Selling price per unit = $180 Variable cost per unit = $130

Q: If DF sells three Masoline for each Aldernite, how much would production and contribution margin…

A:

Q: Ahngram Corp. has 1000 carton of oranges that cost $20 per carton in direct costs and $19.00 per…

A: OPPORTUNITY COSTOpportunity cost is the value of alternative foregone by adopting a particular…

Q: Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and…

A: Basic Camera Revenue 17,000 Less: Variable Costs 8,000 Less: Fixed costs 1,400 Net Income…

Q: Cool Boards manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the…

A: After performing a cost-benefit analysis, a make-or-buy decision is reached on whether to produce a…

Q: Goody Buy Electronics has received an offer from a customer for $6,000 to purchase 12,000 external…

A: Acceptance of new order will depend on the incremental profit, if the new order will increase the…

Q: Anobateh enterprise is trying to figure out what materials they are going to make or buy to their…

A: While making make and buy decisions, a company compares the two costs i.e., the buying cost and the…

Q: NTJ Distributors Ltd has has an annual demand for an airport metal detector of 1400 units. The cost…

A: Lets understand the basics. Economic order quantity is a quantity at which carrying cost and…

Q: Wok Around the Clock, Inc., sells specialty woks. In the current year it expects to incur $840,000…

A: Accept or reject the order is one of the managerial decision making analysis. This helps the…

Q: Dunia Kids Company produces toys and plans to produce a small game. The new game will be sold for 3…

A: Selling price per unit of game: 3.00 Dinar Variable cost per unit of game: 1,250 fils or 1.25 Dinar…

Q: XYZ Enterprises produces high quality blankets sold to hotels and resorts. Blankets must be well…

A: The special order should be considered of it provides additional income to the business.

Q: Oren Manis has a division that makes burlap bags for the citrus industry. The division has fixed…

A: Break-even sales refer to the level of sales at which a company's total revenue equals its total…

Q: Radar Company sells bikes for $500 each. The company currently sells 4,200 bikes per year and could…

A: Incremental analysis :— It is one of the analysis which shows the comparison between two different…

Q: Victory Tire Company makes a special kind of racing tire. Variable costs are $220 per​ unit, and…

A: Increase (decrease) in operating income = [(New sales price - old sales price) - (New variable cost…

Q: Julia's Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has…

A: MSRP stands for "manufacturer's recommended retail price," which refers to the price that a…

Q: Ten Toes produces sports socks. The company has fixed expenses of $95,000 and variable expenses of…

A: The Break-even point is the one at which the company will have no profit and loss from the sale of…

Q: Fashionista Toys makes three versions of the tiny 'Oh My Gosh You' dolls. The first version requires…

A: The problem has been formulated as below : Let X1  = the number of units of version 1 to be…

Q: Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and…

A: Operating Income = Sales - Purchase -Shipment cost - Fixed cost

Q: Sweet Taste has the capacity to produce either 45,000 corncob pipes or 21,000 cornhusk dolls per…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…

Q: Radar Company sells bikes for $450 each. The company currently sells 4,500 bikes per year and could…

A: The contribution margin represents the portion of a product's sales revenue that isn't used up by…

Q: Craig owns border manufacturaing, making and selling hubs for 24$ a hub. His fixed costs are 1250…

A: Cost can be either of two types: either fixed cost or variable cost. Variable costs are those costs…

Q: Winter Sports manufactures snowboards. Its cost of making 1,700 bindings is as follows: (Click the…

A: Make cost is the cost incurred in producing the product. Buy cost is the cost of purchasing the…

Q: Suppose that Dove is introducing a new soap (Dove Natural) and expects the following: a…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given, then first question is to be…

Q: Requirement 1. Cool Boards' accountants predict that purchasing the bindings from Lewis will enable…

A: Differential Cost analysis :— Differential Cost is the change in the Cost From the Adoption of an…

Q: Julia's Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has…

A: Given  MSRP = $2500  Retailer is selling it by giving discount of 18%  It means Retailer Selling…

Q: Waterways packages some of its products into sets for home installations. One set (small) sells for…

A: Formula: Contribution margin per unit of limited resource = Contribution margin per unit / Machine…

Q: Radar Company sells bikes for $520 each. The company currently sells 4,300 bikes per year and could…

A: In analyzing the special offer, we first calculated the income derived from selling 320 bikes at a…

Q: Sunland Enterprises produces giant stuffed bears. Each bear consists of $16 of variable costs and…

A: The fixed costs are not incurred for the special offer that can be completed with existing capacity.…

Q: If Division A needs 11,250 lamps instead of 9,000 during the next year, what should be the minimum…

A: Lets understand the basics.When transfer is made from one division of entity to another division of…

Q: Alpine Luggage has a capacity to produce 200,000 suitcases per year. The company is currently…

A: The differential analysis is performed to compare the different alternatives available with the…

Q: Zachary Fruit Drink Company planned to make 202,000 containers of apple juice. It expected to use…

A: The standard costs are the predetermined per-unit costs of the products. It forms the basis of…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.