Question

Down Home Jeans Co. has an annual plant capacity of 63,300 units, and current production is 43,600 units. Monthly fixed costs

0 0
Add a comment Improve this question Transcribed image text
Answer #1
a
Reject Order Accept Order Differential Effect on Income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenues 0 436800 436800
Costs:
Variable manufacturing costs 0 -420000 -420000
Income (loss) 0 16800 16800
b
Having unused capacity available is relevant to this decision. The differential revenue is more than the differential cost. Thus, accepting this additional business will result in a net gain
c
Minimum price per unit 25.01
Workings:
Revenues =16800*26
Variable manufacturing costs =16800*25
Add a comment
Know the answer?
Add Answer to:
Down Home Jeans Co. has an annual plant capacity of 63,300 units, and current production is...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 63,700...

    Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 63,700 units, and current production is 43,600 units. Monthly fixed costs are $38,600, and variable costs are $25 per unit. The present selling price is $38 per unit. On November 12 of the current year, the company received an offer from Fields Company for 16,400 units of the product at $28 each. Fields Company will market the units in a foreign country under its own...

  • Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 66,500...

    Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 66,500 units, and current production is 44.700 units. Monthly fixed costs are $40,900, and variable costs as year, the company received an offer from Fields Company for 14,900 units of the product at $26 each. Fields Company will market the units in a to res: monthly fixed costs are $40,900, and variable costs are $25 per unit. The present selling price is $34 per unit....

  • decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 66,400...

    decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 66,400 units, and current production is 43,100 units. Monthly fixed costs are $39,400, and variable costs are $25 per unit. The present selling price is $34 per unit. On November 12 of the current year, the company received an offer from Fields Company for 14,700 units of the product at $27 each. Fields Company will market the units in a foreign country under its own...

  • Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 64,200...

    Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 64,200 units, and current production is 43,300 units. Monthly fixed costs are $40,900, and variable costs are $25 per unit. The present selling price is $34 per unit. On November 12 of the current year, the company received an offer from Fields Company for 16,100 units of the product at $26 each. Fields Company will market the units in a foreign country under its own...

  • Homestead Jeans Co. has an annual plant capacity of 65,900 units, and current production is 45,000...

    Homestead Jeans Co. has an annual plant capacity of 65,900 units, and current production is 45,000 units. Monthly fixed costs are $38,100, and variable costs are $25 per unit. The present selling price is $35 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 16,900 units of the product at $29 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is...

  • Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 64,900 units,...

    Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 64,900 units, and current production is 45,500 units. Monthly fixed costs are $40,400, and variable costs are $25 per unit. The present selling price is $34 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 15,600 units of the product at $27 each. Dawkins Company will market the units in a foreign country under its own brand...

  • 1. Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of...

    1. Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 66,200 units, and current production is 44,200 units. Monthly fixed costs are $41,100, and variable costs are $25 per unit. The present selling price is $34 per unit. On November 12 of the current year, the company received an offer from Fields Company for 15,600 units of the product at $28 each. Fields Company will market the units in a foreign country under its...

  • Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 65,000 units,...

    Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand...

  • Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 63,700 units,...

    Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 63,700 units, and current production is 43,300 units. Monthly fixed costs are $38,900, and variable costs are $25 per unit. The present selling price is $34 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 15,500 units of the product at $26 each. Dawkins Company will market the units in a foreign country under its own brand...

  • Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 63,600 units,...

    Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 63,600 units, and current production is 43,900 units. Monthly fixed costs are $40,100, and variable costs are $25 per unit. The present selling price is $32 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 15,200 units of the product at $26 each. Dawkins Company will market the units in a foreign country under its own brand...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT