Homework Answers
Increase (Decrease) in operating income
= (special order revenue - Variable Manufacturing cost) * no of units
= (48 - 35) * 800
= increase by 10,400
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Special Order Pope Company manufactures a variety of hiking boots and has received a special one-time-only...
Please explain what costs you include when deciding to take the special order and How you...
Please explain what costs you include when deciding to
take the special order and How you get whether the business is
increasing or decreasing operating income by accepting the order.
Thank you
10:26 & D 62 nybusinesscourse.com Business Course Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a new customer. Pope has sufficient idle capacity to accept the special order to manufacture 1,100 pairs of boots at a price of $51.00 per...
Rollie's Recreational Feet manufactures three types of footwear: hiking boots, cross-trainers, and sandals. The planning team...
Rollie's Recreational Feet manufactures three types of footwear: hiking boots, cross-trainers, and sandals. The planning team is working through market research material for the upcoming season to assist in determining profitability for the coming year. The marketing manager reports that they sell twice the amount of hiking boots as cross-trainers, and twice as many sandaks as hiking boots. The controller has worked with the production and sales managers and purchasing to determine the following reves and variable costs Hiking Boots...
Tullius Corporation has received a request for a special order of 9,600 units of product C64...
Tullius Corporation has received a request for a special order of 9,600 units of product C64 for $47.70 each. The normal selling price of this product is $52.80 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows: Direct materials $18.50 Direct labor 7.80 Variable manufacturing overhead 5.00 Fixed manufacturing overhead 7.90 Unit product cost $39.20 Direct labor is a...
The Cozy Company manufactures Slippers and sells them at $10 a pair. Variable manufacturing costs $5.75...
The Cozy Company manufactures Slippers and sells them at $10 a pair. Variable manufacturing costs $5.75 a paird allocated foxed tanufacturing cost is $1.75 a pair. at has enough idle capecity available to accept a co-me-only special order of 25,000 pairs of slippers at $7.50 a pair Caxy will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales?...
Holtrop Corporation has received a request for a special order of 9,400 units of product Z74...
Holtrop Corporation has received a request for a special order of 9,400 units of product Z74 for $46.30 each. The normal selling price of this product is $51.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product Z74 is computed as follows: Direct materials $17.10 Direct labor 6.40 Variable manufacturing overhead 3.60 Fixed manufacturing overhead 6.50 Unit product cost $33.60 Direct labor is a...
Gardner Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails...
Gardner Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails per year and is currently producing and selling 30,000 sails per year. The following information relates to current production. Sales price per unit $180 Variable costs per unit: Manufacturing. $62 Selling & Admin. $22 Total fixed costs: Manufacturing. $700,000 Selling & Admin. $250,000 Assume that a special pricing order is accepted for 5,600 sails at a sales price of $140 per unit. This special...
Wehrs Corporation has received a request for a special order of 9,800 units of product K19...
Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $47.30 each. The normal selling price of this product is $52.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $ 18.10 Direct labor 7.40 Variable manufacturing overhead 4.60 Fixed manufacturing overhead 7.50 Unit product cost $ 37.60 Direct labor is a variable cost. The...
Wehrs Corporation has received a request for a special order of 8,300 units of product K19...
Wehrs Corporation has received a request for a special order of 8,300 units of product K19 for $45.20 each. The normal selling price of this product is $50.30 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $ 16.00 Direct labor 5.30 Variable manufacturing overhead 2.50 Fixed manufacturing overhead 5.40 Unit product cost $ 29.20 Direct labor is a variable cost. The...
Wehrs Corporation has received a request for a special order of 9,800 units of product K19...
Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $47.30 each. The normal selling price of this product is $52.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $18.10 7.40 4.60 7.50 $37.60 Direct labor is a variable cost. The special order...
Wehrs Corporation has received a request for a special order of 9,100 units of product K19...
Wehrs Corporation has received a request for a special order of 9,100 units of product K19 for $46.00 each. The normal selling price of this product is $51.10 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $ 16.80 Direct labor 6.10 Variable manufacturing overhead 3.30 Fixed manufacturing overhead 6.20 Unit product cost $ 32.40 Direct labor is a variable cost. The...
Please explain what costs you include when deciding to
take the special order and How you get whether the business is
increasing or decreasing operating income by accepting the order.
Thank you
10:26 & D 62 nybusinesscourse.com Business Course Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a new customer. Pope has sufficient idle capacity to accept the special order to manufacture 1,100 pairs of boots at a price of $51.00 per...
Rollie's Recreational Feet manufactures three types of footwear: hiking boots, cross-trainers, and sandals. The planning team is working through market research material for the upcoming season to assist in determining profitability for the coming year. The marketing manager reports that they sell twice the amount of hiking boots as cross-trainers, and twice as many sandaks as hiking boots. The controller has worked with the production and sales managers and purchasing to determine the following reves and variable costs Hiking Boots...
The Cozy Company manufactures Slippers and sells them at $10 a pair. Variable manufacturing costs $5.75 a paird allocated foxed tanufacturing cost is $1.75 a pair. at has enough idle capecity available to accept a co-me-only special order of 25,000 pairs of slippers at $7.50 a pair Caxy will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales?...
Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $47.30 each. The normal selling price of this product is $52.40 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $18.10 7.40 4.60 7.50 $37.60 Direct labor is a variable cost. The special order...
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