Homework Answers
| Reject Order | Accept Order | Incremental Revenue and costs | |
| Revenues | 0 | 57,350 | 57,350 |
| Costs | 0 | 54,250 | 54,250 |
| Net Income/Loss | 0 | 3,100 | 3,100 |
| Yes, the order should be accepted since incremental profit | |||
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Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $14, labour of...
Question 5 Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $14,...
Question 5 Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $14, labour of $14, variable overhead of $4, and fixed overhead of $6. Each shelf normally sells for $45. A customer is offering to buy 1,550 units at $37 each. Shelf-It will incur additional costs of $3 per shelf to imprint a logo and to pay for shipping. (a) Prepare an incremental analysis for the special order. Reject Order Accept Order Incremental Revenue and Costs...
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...
Sheridan Company incurs a cost of $35 per unit, of which $20 is variable, to make...
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...
Maize Company incurs a cost of $35.97 per unit, of which 19.77 is variable, to make...
Maize Company incurs a cost of $35.97 per unit, of which 19.77 is variable, to make a product that normally sells for $57.72. A foreign wholesaler offers to buy 5, 100 units at $30.69 each. Maize will incur additional costs of $2.66 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. (Enter negative amounts using...
Ivanhoe Company incurs a cost of $34 per unit, of which $21 is variable, to make...
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...
Question 7 Crane Company incurs a cost of $35 per unit, of which $19 is variable,...
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...
Question 6 Corn Company incurs a cost of $35.30 per unit, of which $19.10 is variable,...
Question 6 Corn Company incurs a cost of $35.30 per unit, of which $19.10 is variable, to make a product that normally sells for $58.90. A foreign wholesaler offers to buy 6,300 units at $31.90 each. Corn will incur additional costs of $1.10 per unit to imprint a logo and to pay for shipping. (a) Calculate the increase or decrease in net income Corn will realize by accepting the special order, assuming Corn has sufficient excess operating capacity. (If an...
Do It! Review 20-2 Your answer is partially correct. Try again. Malze Company Incurs a cost of $34.98 per unit, of...
Do It! Review 20-2 Your answer is partially correct. Try again. Malze Company Incurs a cost of $34.98 per unit, of which $20.45 is variable, to make a product that normally sells for $58.46. A foreign wholesaler offers to be units at $30.00 each. Maize will incur additional costs of $2.91 per unit to Imprint a logo and to pay for shipping, Compute the increase or decrease in net incom Maize will realize by accepting the special order, assuming Maize...
At Bargain Electronics, it costs $29 per unit ($15 variable and $14 fixed) to make an...
At Bargain Electronics, it costs $29 per unit ($15 variable and $14 fixed) to make an MP3 player that normally sells for $40. A foreign wholesaler offers to buy 3.200 units at $28 each. Bargain Electronics will incur special shipping costs of $2 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or...
At Bargain Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an...
At Bargain Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $49. A foreign wholesaler offers to buy 4,570 units at $25 each. Bargain Electronics will incur special shipping costs of $1 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or...
Question 5 Shelf-It Ltd. incurs the following costs to make each custom-made shelf: materials of $14, labour of $14, variable overhead of $4, and fixed overhead of $6. Each shelf normally sells for $45. A customer is offering to buy 1,550 units at $37 each. Shelf-It will incur additional costs of $3 per shelf to imprint a logo and to pay for shipping. (a) Prepare an incremental analysis for the special order. Reject Order Accept Order Incremental Revenue and Costs...
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...
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...
Maize Company incurs a cost of $35.97 per unit, of which 19.77 is variable, to make a product that normally sells for $57.72. A foreign wholesaler offers to buy 5, 100 units at $30.69 each. Maize will incur additional costs of $2.66 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. (Enter negative amounts using...
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...
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...
Question 6 Corn Company incurs a cost of $35.30 per unit, of which $19.10 is variable, to make a product that normally sells for $58.90. A foreign wholesaler offers to buy 6,300 units at $31.90 each. Corn will incur additional costs of $1.10 per unit to imprint a logo and to pay for shipping. (a) Calculate the increase or decrease in net income Corn will realize by accepting the special order, assuming Corn has sufficient excess operating capacity. (If an...
Do It! Review 20-2 Your answer is partially correct. Try again. Malze Company Incurs a cost of $34.98 per unit, of which $20.45 is variable, to make a product that normally sells for $58.46. A foreign wholesaler offers to be units at $30.00 each. Maize will incur additional costs of $2.91 per unit to Imprint a logo and to pay for shipping, Compute the increase or decrease in net incom Maize will realize by accepting the special order, assuming Maize...
At Bargain Electronics, it costs $29 per unit ($15 variable and $14 fixed) to make an MP3 player that normally sells for $40. A foreign wholesaler offers to buy 3.200 units at $28 each. Bargain Electronics will incur special shipping costs of $2 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or...
At Bargain Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $49. A foreign wholesaler offers to buy 4,570 units at $25 each. Bargain Electronics will incur special shipping costs of $1 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or...
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