Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.60 per unit....
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.60 per unit. Bluebird currently produces and sells 75,000 units at $6.60 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler’s name and would not affect Bluebird’s sales through its normal channels. Production costs for these units are $3.70 per unit, which includes $2.05 variable cost and $1.65 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:
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Bluebird Mfg. has received a special one-time order for 15,000
bird feeders at $2.60 per unit....
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.80 per unit....
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.80 per unit. Bluebird currently produces and sells 75,000 units at $6.80 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler’s name and would not affect Bluebird’s sales through its normal channels. Production costs for these units are $3.60 per unit, which includes $2.15 variable cost and $1.45 fixed cost. If Bluebird accepts this additional business, the effect on...
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.90 per unit....
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.90 per unit. Bluebird currently produces and sells 75,000 units at $6.90 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler’s name and would not affect Bluebird’s sales through its normal channels. Production costs for these units are $3.75 per unit, which includes $2.20 variable cost and $1.55 fixed cost. If Bluebird accepts this additional business, the effect on...
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit....
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sells 75,000 units at $7.00 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler’s name and would not affect Bluebird’s sales through its normal channels. Production costs for these units are $3.50 per unit, which includes $2.25 variable cost and $1.25 fixed cost. If Bluebird accepts this additional business, the effect on...
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $4.00 per unit...
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $4.00 per unit Bluebird currently produces and sells 75,000 units at $8.00 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $5.00 per unit, which includes $2.75 variable cost and $2.25 fixed cost. If Bluebird accepts this additional business, the effect on...
Bluebird Mfg. has received a special one-time order for 14,000 bird feeders at $5 per unit....
Bluebird Mfg. has received a special one-time order for 14,000 bird feeders at $5 per unit. Bluebird currently produces and sells 81,000 units at $7 each. This level represents 85% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $3.50 per unit, which includes $3.00 variable cost and $0.50 fixed cost. If Bluebird accepts this additional business, the incremental cost...
16- Wren Pork Company uses the value basis of allocating joint costs in its production of...
16- Wren Pork Company uses the value basis of allocating joint costs in its production of pork products. Relevant information for the current period follows: Product Pounds Price/lb. Loin chops 3,000 $ 5.00 Ground 10,000 2.00 Ribs 4,000 4.75 Bacon 6,000 3.50 The total joint cost for the current period was $43,000. How much of this cost should Wren Pork allocate to Loin chops? Multiple Choice $0. $5,909. $8,600. $10,750. $43,000. 18- Marks Corporation has two operating departments, Drilling and...
Minor Electric has received a special one-time order for 900 light fixtures (units) at $5 per...
Minor Electric has received a special one-time order for 900 light fixtures (units) at $5 per unit. Minor currently produces and sells 4,500 units at $6.00 each. This level represents 75% of its capacity Production costs for these units are $4.50 per unit which includes $3.00 variable cost and $150 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $475 with a zero salvage value. Management expects no other changes in...
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $23 per...
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $23 per unit Minor currently produces and sells 7.500 units at $24.00 each. This level represents 75% of its capacity. Production costs for these units are $31.50 per unit, which includes $21.00 variable cost and $10.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $925 with a zero salvage value. Management expects no other changes in...
What is the relevant cost per unit in this case? Exercise 12-9 Special Order Decision (LO12-4)...
What is the relevant cost per unit in this case?
Exercise 12-9 Special Order Decision (LO12-4) Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense $ 5.10 $ 3.80 $ 1.00 $ 4.20 $ 1.50 $ 2.40 The normal...
Bertans has received a special order for 2,400 units of its product at a special price...
Bertans has received a special order for 2,400 units of its product at a special price of $18. The product normally sells for $25 and has the following manufacturing costs: Per unit Direct materials $ 7 Direct labor 4 Variable manufacturing overhead 2 Fixed manufacturing overhead 3 Unit cost $ 16 Assume that Bertans' production is at full capacity. If Bertans accepts the order, what effect will the order have on the company’s short-term profit? If a decrease, place a...
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $4.00 per unit Bluebird currently produces and sells 75,000 units at $8.00 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $5.00 per unit, which includes $2.75 variable cost and $2.25 fixed cost. If Bluebird accepts this additional business, the effect on...
Bluebird Mfg. has received a special one-time order for 14,000 bird feeders at $5 per unit. Bluebird currently produces and sells 81,000 units at $7 each. This level represents 85% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $3.50 per unit, which includes $3.00 variable cost and $0.50 fixed cost. If Bluebird accepts this additional business, the incremental cost...
Minor Electric has received a special one-time order for 900 light fixtures (units) at $5 per unit. Minor currently produces and sells 4,500 units at $6.00 each. This level represents 75% of its capacity Production costs for these units are $4.50 per unit which includes $3.00 variable cost and $150 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $475 with a zero salvage value. Management expects no other changes in...
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $23 per unit Minor currently produces and sells 7.500 units at $24.00 each. This level represents 75% of its capacity. Production costs for these units are $31.50 per unit, which includes $21.00 variable cost and $10.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $925 with a zero salvage value. Management expects no other changes in...
What is the relevant cost per unit in this case?
Exercise 12-9 Special Order Decision (LO12-4) Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense $ 5.10 $ 3.80 $ 1.00 $ 4.20 $ 1.50 $ 2.40 The normal...
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