Homework Answers
| Reject order | Accept order | Net Income increase (decrease) | |
| Revenues | 0 | 4570*25 = $114,250 | $114,250 |
| Cost - variable manufacturing | 0 | 4570*16 = 73120 | (73120) |
| Shipping | 0 | 4570*1 = 4570 | (4570) |
| Net Income | 0 | $36,560 | $36,560 |
The special order should be accepted.
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At Bargain Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an...
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Maize Company incurs a cost of $34.74 per unit, of which $19.38 is variable, to make...
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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...
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for shipping. Compute the increase or decrease in net income
Ivanhoe will realize by accepting the special order, assuming
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(Enter negative amounts using either...
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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...
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...
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...
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...
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