1 | ||
Per unit | Total 2800 units | |
Incremental revenue | 5.00 | 14000 |
Incremental costs: | ||
Direct materials | 1.18 | 3304 |
Direct labor | 0.37 | 1036 |
Variable manufacturing overhead | 2.23 | 6244 |
Modifications cost | 400 | |
Total Incremental costs | 10984 | |
Incremental net operating income(loss) | 3016 | |
Profit(or loss) increases by 3016 | ||
2 | ||
Yes, accept the special order | ||
3 | ||
Per unit | Total 2800 units | |
Incremental revenue | 1.50 | 4200 |
Incremental costs: | ||
Direct materials | 1.18 | 3304 |
Direct labor | 0.37 | 1036 |
Variable manufacturing overhead | 2.23 | 6244 |
Modifications cost | 400 | |
Total Incremental costs | 10984 | |
Incremental net operating income(loss) | -6784 | |
Profit(or loss) decreases by 6784 | ||
4 | ||
Special order price = Regular sale price+Modification cost per unit | ||
Special order price | 13.14 | =13+(400/2800) |
Required information E7-6 through E7-10. The following information applies to the questions displayed below.] Morning Sky,...
Required information "Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products. The...
Required information E7-6 through E7-10. The following information applies to the questions displayed below.) Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well...
Required information E7-6 through E7-10. (The following information applies to the questions displayed below.) Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well...
Required information E7-6 through E7-10. [The following information applies to the questions displayed below.) Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well...
E7-5 Analyzing Special-Order Decision [LO 7-2, 7-3] MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom Coverage of the history of the Pacific Northwest, and the state of Oregon in particular. MSI has not sold its products directly to teachers or school systems in the past, but its Marketing...
Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products. The gaming market has...
MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the history of the Pacific Northwest, and the state of Oregon in particular MSI has not sold its products directly to teachers or school systems in the past, but its Marketing Department identified that possibility during a recent...
MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the history of the Pacific Northwest, and the state of Oregon in particular. MSI has not sold its products directly to teachers or school systems in the past, but its Marketing Department identified that possibility during a recent...
Required information (The following information applies to the questions displayed below.) Morning Sky, Inc. ( MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the...
Required information [The following information applies to the questions displayed below.) Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories...