Compute the total relevant cost of filling the special sales order.

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Answer 1

Question

Chapter 11, Problem 33P

1.

To determine

Compute the total relevant cost of filling the special sales order.

2.

To determine

State the changes in operating income, if the special order is accepted.

3.

To determine

Compute the break even selling price per unit for the special sales order.

4.

To determine

Prepare comparative income statements for both the current situation using the contribution format, assume that the special order is accepted at the break-even price determined in requirement 3.

5.

To determine

Describe the doings of Company GGI and state the ethical and strategic issues that are associated with the decision.

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Provide Accounting Answer

Danforth Industries had the following activities, traceable costs, and physical flow of driver units: • • Technical support (hours): $380,000 total cost, 10,000 hours Shipping processing (orders): $275,000 total cost, 3,600,000 orders • Account reconciliation (accounts): $145,000 total cost, 38,000 accounts Customer correspondence (letters): $50,000 total cost, 4,800 letters The above activities are used by Division A and Division B as follows: Technical support hours: 2,500 hours (Division A), 4,500 hours (Division B) Shipping processing orders: 480,000 orders (Division A), 210,000 orders (Division B) Account reconciliation accounts: 9,500 accounts (Division A), 8,200 accounts (Division B) Customer correspondence letters: 1,100 letters (Division A), 1,600 letters (Division B) How much of the technical support cost will be assigned to Division A?

Answer 2

Question

Chapter 11, Problem 33P

1.

To determine

Compute the total relevant cost of filling the special sales order.

2.

To determine

State the changes in operating income, if the special order is accepted.

3.

To determine

Compute the break even selling price per unit for the special sales order.

4.

To determine

Prepare comparative income statements for both the current situation using the contribution format, assume that the special order is accepted at the break-even price determined in requirement 3.

5.

To determine

Describe the doings of Company GGI and state the ethical and strategic issues that are associated with the decision.

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Answer 3

Question

Chapter 11, Problem 33P

1.

To determine

Compute the total relevant cost of filling the special sales order.

2.

To determine

State the changes in operating income, if the special order is accepted.

3.

To determine

Compute the break even selling price per unit for the special sales order.

4.

To determine

Prepare comparative income statements for both the current situation using the contribution format, assume that the special order is accepted at the break-even price determined in requirement 3.

5.

To determine

Describe the doings of Company GGI and state the ethical and strategic issues that are associated with the decision.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 33P

1.

To determine

Compute the total relevant cost of filling the special sales order.

2.

To determine

State the changes in operating income, if the special order is accepted.

3.

To determine

Compute the break even selling price per unit for the special sales order.

4.

To determine

Prepare comparative income statements for both the current situation using the contribution format, assume that the special order is accepted at the break-even price determined in requirement 3.

5.

To determine

Describe the doings of Company GGI and state the ethical and strategic issues that are associated with the decision.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 33P

1.

To determine

Compute the total relevant cost of filling the special sales order.

2.

To determine

State the changes in operating income, if the special order is accepted.

3.

To determine

Compute the break even selling price per unit for the special sales order.

4.

To determine

Prepare comparative income statements for both the current situation using the contribution format, assume that the special order is accepted at the break-even price determined in requirement 3.

5.

To determine

Describe the doings of Company GGI and state the ethical and strategic issues that are associated with the decision.

Answer 6

Chapter 11, Problem 33P

1.

To determine

Compute the total relevant cost of filling the special sales order.

Answer 7

Chapter 11, Problem 33P

1.

To determine

Compute the total relevant cost of filling the special sales order.

Answer 8

2.

To determine

State the changes in operating income, if the special order is accepted.

Answer 9

2.

To determine

State the changes in operating income, if the special order is accepted.

Answer 10

3.

To determine

Compute the break even selling price per unit for the special sales order.

Answer 11

3.

To determine

Compute the break even selling price per unit for the special sales order.

Answer 12

4.

To determine

Prepare comparative income statements for both the current situation using the contribution format, assume that the special order is accepted at the break-even price determined in requirement 3.

Answer 13

4.

To determine

Prepare comparative income statements for both the current situation using the contribution format, assume that the special order is accepted at the break-even price determined in requirement 3.

Answer 14

5.

To determine

Describe the doings of Company GGI and state the ethical and strategic issues that are associated with the decision.

Answer 15

5.

To determine

Describe the doings of Company GGI and state the ethical and strategic issues that are associated with the decision.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 11 - Prob. 1Q Ch. 11 - List at least four different decisions for which...Ch. 11 - What is the relevant cost when determining whether...Ch. 11 - List four to six strategic factors that are often...Ch. 11 - How do short-term evaluations affect a manager’s...Ch. 11 - List four or five important limitations of...Ch. 11 - How do strategic factors affect the proper use of...Ch. 11 - List some of the behavioral, implementation, and...Ch. 11 - How does the presence of one production constraint...Ch. 11 - What is the relationship, if any, between the...

Compute the total relevant cost of filling the special sales order.

Compute the total relevant cost of filling the special sales order.

State the changes in operating income, if the special order is accepted.

Compute the break even selling price per unit for the special sales order.

Prepare comparative income statements for both the current situation using the contribution format, assume that the special order is accepted at the break-even price determined in requirement 3.

Describe the doings of Company GGI and state the ethical and strategic issues that are associated with the decision.

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Chapter 11 Solutions