Answer 1 | |||||||||
First Question , need to determined " What is the financial Advantage ( Disadvantage) of accepting this Special Order | |||||||||
Rate$/Unit | |||||||||
Direct Material | 2.10 | ||||||||
Direct Labour | 3.00 | ||||||||
Variable Manufacturing OH | 0.7 | ||||||||
Variable Selling & Admin OH | 1.5 | ||||||||
Total Cost - Operation | 7.30 | B | |||||||
Selling price | 17 | A | |||||||
( sepcial order received) | |||||||||
Contributon | 9.70 | (A-B) | |||||||
Number of Unit | 1500 | ||||||||
Additional Contribution from received of 1500 Unit = $ 14,550 (1500 unit *$9.70/ unit) |
Answer 2 | ||||||
In second question also asked same Question - Advantage /Disadvantage of project acceptance | ||||||
Dacks Present Net profit Position as below | ||||||
Amnt$ | Amnt$/ Unit | |||||
Unit = 87000 | ||||||
Selling price $ 58 / unit | ||||||
Sales Value 87000*$58/Unit | 58 | |||||
Less | ||||||
Varaiable cost | ||||||
Direct material | 9.5 | |||||
Direct Labour | 9 | |||||
Variable Manufacturing OH | 2 | |||||
Variable Selling Expenses | 4.7 | |||||
Total variable cost | 25 | |||||
Contribution | 33 | |||||
Number of unit =87000 | ||||||
Contribution in $ term | 28,53,600 | A | (87000*$33) | |||
Less Fixed cost | ||||||
ManufaCtiring OH | 6,09,000 | B | ||||
Selling Expenses | 2,61,000 | C | ||||
Net Profit | 19,83,600 | (A-B-C) | ||||
At Output of 87000 Unit , company generated Net profit $ 1983600 | ||||||
Noe as per Question , there are some incremental effect on revenue growth by | ||||||
25% ., so Output increased by 87000*125%= 108750Unit | ||||||
As per above date , | ||||||
Contribution $/ unit | 33 | |||||
Number of unit =108750 | ||||||
Contribution in $ term -A | 35,67,000 | (108750*$33) | ||||
Less | ||||||
Fixed ManufaCtiring OH-B | 6,09,000 | |||||
Fixed Selling Expenses-C | 3,61,000 | |||||
( $261000+$100000 | ||||||
Net Profit (A-B-C) | 25,97,000 | D | ||||
Less | ||||||
Net
profit as per present situation ( as above) |
19,83,600 | D1 | ||||
Incremental Net profit | 6,13,400 | (D-D1) | ||||
So final answer would be PROJECT Accepted with above Incremental Benefit |
can you help me with those please Delta Company produces a single product. The cost of...
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