Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion. Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume. Manufacturing cost : Manufacturing cost is a cost of manufacturing products or goods. Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods. Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost. Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex. Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions 1. To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

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Answer 1

Question

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

To determine

2.

To Decide: Nautical should accept special sales orders or not.

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

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Calculate the net income?

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The highest value of total cost was $880,000 in June for Mantilla Beverages, Inc. Its lowest value of total cost was $630,000 in December. The company makes a single product. The production volumes in June and December were 17,000 and 12,000 units, respectively. What is the fixed cost per month? (Round any intermediate calculations to the nearest cent, and the final answer to the nearest dollar.)

Answer 2

Question

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

To determine

2.

To Decide: Nautical should accept special sales orders or not.

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Expert Solution & Answer

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Answer 3

Question

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

To determine

2.

To Decide: Nautical should accept special sales orders or not.

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Expert Solution & Answer

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Answer 4

Question

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

To determine

2.

To Decide: Nautical should accept special sales orders or not.

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Expert Solution & Answer

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Answer 5

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

To determine

2.

To Decide: Nautical should accept special sales orders or not.

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Answer 6

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

Answer 7

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

Answer 8

To determine

2.

To Decide: Nautical should accept special sales orders or not.

Answer 9

To determine

2.

To Decide: Nautical should accept special sales orders or not.

Answer 10

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Answer 11

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 25 - Prob. 1QC Ch. 25 - Prob. 2QC Ch. 25 - Which of the following costs are irrelevant to...Ch. 25 - Prob. 4QC Ch. 25 - Prob. 5QC Ch. 25 - 6. When companies are price-setters, their...Ch. 25 - Prob. 7QC Ch. 25 - Prob. 8QC Ch. 25 - Prob. 9QC Ch. 25 - Prob. 10QC

2. To Decide: Nautical should accept special sales orders or not.

3. To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

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Chapter 25 Solutions

2.

To Decide: Nautical should accept special sales orders or not.

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.