Homework Answers
|
Net income Increase(Decrease) |
|
|---|---|
| Incremental revenue (6300*31.90) | 200,970 |
| Incremental cost (19.10+1.10)*6300 | 127,260 |
| Increase in net income | 73,710 |
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Question 6 Corn Company incurs a cost of $35.30 per unit, of which $19.10 is variable,...
Maize Company incurs a cost of $34.74 per unit, of which $19.38 is variable, to make...
Maize Company incurs a cost of $34.74 per
unit, of which $19.38 is variable, to make a product that normally
sells for $58.78. A foreign wholesaler offers to buy 5,800 units at
$31.10 each. Maize will incur additional costs of $3.09 per unit to
imprint a logo and to pay for shipping. Compute the increase or
decrease in net income Maize will realize by accepting the special
order, assuming Maize has sufficient excess operating capacity.
Question 5 Maize Company incurs...
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variable, to make a product that normally sells for $59. A foreign
wholesaler offers to buy 6,600 units at $30 each. Ivanhoe will
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for shipping. Compute the increase or decrease in net income
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variable, to make a product that normally sells for $58. A foreign
wholesaler offers to buy 5,700 units at $30 each. Sheridan will
incur additional costs of $4 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...
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Emil Manufacturing incurs unit costs of $7.00 ($5.00 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 10,000 of the parts for $5.40 per unit. If it accepts the offer, Emil will save all variable costs and $1 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Emil will realize by buying the part. (Round per unit answers to 2 decimal places, e.g. 15.25. If an...
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Maize Company incurs a cost of $34.74 per
unit, of which $19.38 is variable, to make a product that normally
sells for $58.78. A foreign wholesaler offers to buy 5,800 units at
$31.10 each. Maize will incur additional costs of $3.09 per unit to
imprint a logo and to pay for shipping. Compute the increase or
decrease in net income Maize will realize by accepting the special
order, assuming Maize has sufficient excess operating capacity.
Question 5 Maize Company incurs...
Question 7 Crane Company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 6,500 units at $30 each. Crane will incur additional costs of $3 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Crane will realize by accepting the special order, assuming Crane has sufficient excess operating capacity. (Enter negative amounts...
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Ivanhoe Company incurs a cost of $34 per unit, of which $21 is
variable, to make a product that normally sells for $59. A foreign
wholesaler offers to buy 6,600 units at $30 each. Ivanhoe will
incur additional costs of $1 per unit to imprint a logo and to pay
for shipping. Compute the increase or decrease in net income
Ivanhoe will realize by accepting the special order, assuming
Ivanhoe has sufficient excess operating capacity.
(Enter negative amounts using either...
Sheridan Company incurs a cost of $35 per unit, of which $20 is
variable, to make a product that normally sells for $58. A foreign
wholesaler offers to buy 5,700 units at $30 each. Sheridan will
incur additional costs of $4 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...
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Question 2 Emil Manufacturing incurs unit costs of $7.20 ($5.20 variable and $2.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 12,600 of the parts for $5.80 per unit. If it accepts the offer, Emil will save all variable costs and $1 of fixed costs. Prepare an analysis showing the total cost savings, if any, that Emil will realize by buying the part. (Round per unit answers to 2 decimal places, e.g. 15.25....
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