Hammer Time produces a limited edition hammer that changes every year. Hammer Time does a one...

Question

Question

Hammer Time produces a limited edition hammer that changes every year. Hammer Time does a one time job of 9,000 hammers. QVC

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Increase in profit by = Special sales - Cost

= 5000*$99 - 5000*73.27 - 25000

= $103,650 more

Add a comment

Answer 2

Similar Homework Help Questions

Hammer Time produces a limited edition hammer that changes every year. Hammer Time does a one...

Hammer Time produces a limited edition hammer that changes every year. Hammer Time does a one time job of 9,000 hammers. QVC believes that it can sell another 5,000 limited edition hammers and inquires about purchasing them to sell on their network. The information is as follows Sales price = $122/unit Variable cost = $68.32/unit Fixed cost = $300,000 QVC offers Hammer Time Inc, $99/unit to purchase the 5,000 units. Producing the additional 5,000 units would raise fixed cost $25,000...
1. Hillman Products produces and sells limited edition decorative mugs. The company's controller has the following...

1. Hillman Products produces and sells limited edition decorative mugs. The company's controller has the following information available from the static budget of one of the product lines for the month of April: Estimated production 5,000 units Direct material per unit 12 ounces Direct material cost per unit $.20 per ounce Actual production during April was 5,400 units. Required: Prepare a flexible budget for the month of April based on actual production.
Q 8.82: A company produces a backpack that has a built-in solar-powered charger for small electrical...

Q 8.82: A company produces a backpack that has a built-in solar-powered charger for small electrical appliances. They sell for $250 each. Other information about the product: Per Unit Total Variable manufacturing cost $150.00 Fixed manufacturing cost $200,000 Variable selling and admin expenses $15.00 Fixed selling and admin expenses $125,000 The company usually produces and sells 5,000 units each year. Last year, however, after a very cold and wet summer, they had 750 units left in inventory. The sports club...

Dobosh Corporation has provided the following information:

Dobosh Corporation has provided the following information:Cost perUnitCost per PeriodDirect materials$7.05Direct labor$3.65Variable manufacturing overhead$1.60Fixed manufacturing overhead$113,400Sales commissions$1.50Variable administrative expense$0.55Fixed selling and administrative expense$36,450Required:a. For financial reporting purposes, what is the total amount of product costs incurred to make 9,000 units?b. For financial reporting purposes, what is the total amount of period costs incurred to sell 9,000 units?c. If 10,000 units are sold, what is the variable cost per unit sold?d. If 10,000 units are sold, what is the total amount...
Perry Corporation produces and sells a single product. Data for that product are: Sales price per...

Perry Corporation produces and sells a single product. Data for that product are: Sales price per unit $295 Variable cost per unit $190 Fixed expenses for the month $640,000 Currently selling 9,000 units Upper management is considering using a biodegradable packaging which costs $8 more per unit but it produces less waste in the long run. Management plans to increase advertising by $12,000 in the first month to advertise this new feature to their packaging. They believe that environmentally friendly...
16) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces...

16) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $5.30 Direct labor $3.65 Variable manufacturing overhead $1.50 Fixed manufacturing overhead $3.90 Fixed selling expense $0.75 Fixed administrative expense $0.60 Sales commissions $0.50 Variable administrative expense $0.50 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units?...

1) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces...

1) Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit I Direct materials S5.30 Direct labor $3.65 I Variable manufacturing overhead S1.50 Fixed manufacturing overhead $3.90 Fixed selling expense S0.75 IlFixed administrative expense S0.60 Sales commissions SO 50 I Variable administrative expense 50.50 Required: a. For financial reporting purposes, what is the total amount of product costs incurred...
Balerio Corporation's relevant range of activity is 5,000 units to 9,000 units. When it produces and...

Balerio Corporation's relevant range of activity is 5,000 units to 9,000 units. When it produces and sells 7,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.90 Direct labor $ 3.50 Variable manufacturing overhead $ 1.80 Fixed manufacturing overhead $ 13.70 Fixed selling expense $ 2.45 Fixed administrative expense $ 2.10 Sales commissions $ 0.60 Variable administrative expense $ 0.50 Required: a. For financial reporting purposes, what is the total amount of...
Fairmount Travel Gear produces backpacks and sells them to vendors who sell them under their own label. The cost of one...

Fairmount Travel Gear produces backpacks and sells them to vendors who sell them under their own label. The cost of one of its backpacks follows: Materials $ 19.30 Labor 13.30 Variable overhead 6.30 Fixed overhead ($3,379,900 per year; 463,000 units per year) 7.30 Total $ 46.20 Riverside Discount Mart, a chain of low-price stores, has asked Fairmount to supply it with 32,000 backpacks for a special promotion Riverside is planning. Riverside has offered to pay Fairmount a unit price of...

Saxbury Corporation's relevant range of actvity is 3,000 units to 7000 units. When it produces and...

Saxbury Corporation's relevant range of actvity is 3,000 units to 7000 units. When it produces and sells 4 per unit are as follows: Cont pex hit 6.80 s 3.50 1.60 4.00 0.75 0.60 0.50 0.50 Direct naterials Direct labor 0256:22 Variable manufacturing overhead Pixed manufacturing overhead Pixed selling expense Pixed administrative expense Sales commissioas Variable administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 4,000 units? b. For financial reporting...

Hammer Time produces a limited edition hammer that changes every year. Hammer Time does a one...

Homework Answers