Tiger Company manufactures sonars for fishing boats. Model 70 sells for $275. Tiger produces and sells...
Tiger Company manufactures sonars for fishing boats. Model 70 sells for $275. Tiger produces and sells 5,400 of them per year. Cost data are as follows:
|
Variable manufacturing |
$115 |
per unit |
|
Variable selling and administrative |
$16 |
per unit |
|
Fixed manufacturing |
$290,000 |
per year |
|
Fixed selling and administrative |
$150,000 |
per year |
A potential deal has come up for a one-time sale of 32 units at a special price of $175 per unit. The sale will not negatively impact the company's regular sales activities and will require the normal variable manufacturing costs and selling and administrative costs.
There is plenty of excess capacity and the deal will not impact fixed costs.
Create a Differential Analysis of a Special Pricing Decision showing the expected increase or decrease in operating income if this order is accepted.
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Tiger Company manufactures sonars for fishing boats. Model 70
sells for $275. Tiger produces and sells...
Pisces Company manufactures sonars for fishing boats. Model 100 sells for $400. Pisces produces and sells...
Pisces Company manufactures sonars for fishing boats. Model 100 sells for $400. Pisces produces and sells 7.000 units per year. Cost data are as follows: Variable manufacturing $105 per unit Variable selling and administrative $5 per unit Fixed manufacturing $280,000 per year Fixed selling and administrative $130.000 per year An offer has come in for a one-time sale of 100 units at a special price of $140 per unit. The marketing manager says that the sale will not affect the...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 10 Direct labor $ 7 Variable manufacturing overhead $ 3 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 380,000 Fixed selling and administrative $ 290,000 During the year, the company produced 38,000 units and sold 18,000 units. The selling price of the company’s product is $61...
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations,...
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs. Variable Costs per Unit Direct materials $10.05 Direct labor $4.62 Variable manufacturing overhead $7.77 Variable selling and administrative expenses $5.23 Fixed Costs per Year Fixed manufacturing overhead $311,550 Fixed selling and administrative expenses $281,534 Siren Company sells the fishing lures for $33.50. During 2020, the company sold 81,000 lures and produced 93,000 lures. Assuming the company uses...
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...
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations,...
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs. Variable Costs per Unit Direct materials $9.60 Direct labor $4.42 Variable manufacturing overhead $7.42 Variable selling and administrative expenses $4.99 Fixed Costs per Year Fixed manufacturing overhead $281,600 Fixed selling and administrative expenses $268,928 Siren Company sells the fishing lures for $32.00. During 2020, the company sold 79,000 lures and produced 88,000 lures. Assuming the company uses...
FILL IN THIS INCOME STATMENT Baxtell Company manufactures and sells a single product. The following costs...
FILL IN THIS INCOME STATMENT
Baxtell Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
22
Direct labour
7
Variable
manufacturing overhead
6
Variable selling and
administrative
9
Fixed costs per year:
Fixed manufacturing
overhead
318,150
Fixed selling and
administrative expense
201,600
During the year, the company produced 35,350 units and sold
28,800 units. The selling price of the company’s product is...
Exercise 19-17 (Part Level Submission) Siren Company builds custom fishing lures for sporting goods stores. In its firs...
Exercise 19-17 (Part Level Submission) Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs. Variable Costs per Unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses $7.88 $3.62 $6.09 $4.10 Fixed Costs per Year Fixed manufacturing overhead Fixed selling and administrative expenses $241,960 $220,605 Siren Company sells the fishing lures for $26.25. During 2017, the company sold 80,000 lures and produced 92,000...
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations,...
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs. Variable Costs per Unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses $7.80 $3.59 $6.03 4.06 Fixed Costs per Year Fixed manufacturing overhead Fixed selling and administrative expenses $244,400 $218,504 Siren Company sells the fishing lures for $26.00. During 2020, the company sold 80,000 lures and produced 94,000 lures. Your answer is correct....
Orchid Company manufactures and sells one product. The company makes and sells 1,000 units of product...
Orchid Company manufactures and sells one product. The company makes and sells 1,000 units of product during the year. The company also provides the following cost data: Cost per unit: Direct materials $61 Direct labor $15 Fixed manufacturing overhead $3 Fixed selling and administrative expenses $2 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. The selling price of the company's product is $268 per unit. Q.: If the company uses super-variable costing,...
Alpine Luggage has a capacity to produce 370,000 suitcases per year. The company is currently producing...
Alpine Luggage has a capacity to produce 370,000 suitcases per year. The company is currently producing and selling 290,000 units per year at a selling price of $397 per case. The cost of producing and selling one case follows: Variable manufacturing costs $ 165 Fixed manufacturing costs 41 Variable selling and administrative costs 81 Fixed selling and administrative costs 20 Total costs $ 307 The company has received a special order for 30,000 suitcases at a price of $248 per...
Pisces Company manufactures sonars for fishing boats. Model 100 sells for $400. Pisces produces and sells 7.000 units per year. Cost data are as follows: Variable manufacturing $105 per unit Variable selling and administrative $5 per unit Fixed manufacturing $280,000 per year Fixed selling and administrative $130.000 per year An offer has come in for a one-time sale of 100 units at a special price of $140 per unit. The marketing manager says that the sale will not affect the...
FILL IN THIS INCOME STATMENT
Baxtell Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
22
Direct labour
7
Variable
manufacturing overhead
6
Variable selling and
administrative
9
Fixed costs per year:
Fixed manufacturing
overhead
318,150
Fixed selling and
administrative expense
201,600
During the year, the company produced 35,350 units and sold
28,800 units. The selling price of the company’s product is...
Exercise 19-17 (Part Level Submission) Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs. Variable Costs per Unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses $7.88 $3.62 $6.09 $4.10 Fixed Costs per Year Fixed manufacturing overhead Fixed selling and administrative expenses $241,960 $220,605 Siren Company sells the fishing lures for $26.25. During 2017, the company sold 80,000 lures and produced 92,000...
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs. Variable Costs per Unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses $7.80 $3.59 $6.03 4.06 Fixed Costs per Year Fixed manufacturing overhead Fixed selling and administrative expenses $244,400 $218,504 Siren Company sells the fishing lures for $26.00. During 2020, the company sold 80,000 lures and produced 94,000 lures. Your answer is correct....
Orchid Company manufactures and sells one product. The company makes and sells 1,000 units of product during the year. The company also provides the following cost data: Cost per unit: Direct materials $61 Direct labor $15 Fixed manufacturing overhead $3 Fixed selling and administrative expenses $2 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. The selling price of the company's product is $268 per unit. Q.: If the company uses super-variable costing,...
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