Solution a:
Variable cost of goods sold per unit = ($2,602,000*77%) / 349300 = $5.7359 per unit
Variable operating expenses per unit = ($839,500*87%) / 349300 = $2.0909 per unit
Variable cost of goods sold on special order = 24400*$5.7359 = $139,956
Operating expenses on special order = (24400*$2.0909) + $3,100 = $54,118
Particulars | Reject order | Accept Order | Net income Increase (Decrease) |
Revenues | $0.00 | $204,472.00 | $204,472.00 |
Cost of goods sold | $0.00 | $139,956.00 | $139,956.00 |
Operating expenses | $0.00 | $54,118.00 | $54,118.00 |
Net income (Loss) | $0.00 | $10,398.00 | $10,398.00 |
Solution b:
Moonbeam company should accept the special order.
- Your answer is partially correct. Moonbeam Company manufactures toasters. For the first 8 months of...
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,300 units) $4,370,000 Cost of goods sold 2,602,000 Gross profit 1,768,000 Operating expenses 839,500 Net income $928,500 Cost of goods sold was 77% variable and 23% fixed; operating expenses were 87% variable and 13% fixed. In September, Moonbeam Company receives a special order for 24,400 toasters at $8.38 each from Luna Company of Ciudad...
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,300 units) $4,370,000 Cost of goods sold 2,602,000 Gross profit 1,768,000 Operating expenses 839,500 Net income $928,500 Cost of goods sold was 77% variable and 23% fixed; operating expenses were 87% variable and 13% fixed. In September, Moonbeam Company receives a special order for 24,400 toasters at $8.38 each from Luna Company of Ciudad...
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (358,400 units) $4,377,000 Cost of goods sold 2,590,720 Gross profit 1,786,280 Operating expenses 837,760 $948,520 Net income Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 24,500 toasters at $8.38 each from Luna Company of Ciudad Juarez....
Moonbeam Company manufactures toasters. For the first 8 months
of 2017, the company reported the following operating results while
operating at 75% of plant capacity:
Sales (349,200 units)
$4,375,000
Cost of goods sold
2,595,000
Gross profit
1,780,000
Operating expenses
839,300
Net income
$940,700
Cost of goods sold was 77% variable and 23% fixed; operating
expenses were 87% variable and 13% fixed.
In September, Moonbeam Company receives a special order for 18,500
toasters at $8.03 each from Luna Company of Ciudad...
Question 9
Moonbeam Company manufactures toasters. For the first 8 months
of 2017, the company reported the following operating results while
operating at 75% of plant capacity:
Sales (350,800 units)
$4,374,000
Cost of goods sold
2,606,000
Gross profit
1,768,000
Operating expenses
841,000
Net income
$927,000
Cost of goods sold was 67% variable and 33% fixed; operating
expenses were 77% variable and 23% fixed.
In September, Moonbeam Company receives a special order for 21,100
toasters at $8.04 each from Luna Company...
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (347,200 units) $4,380,000 Cost of goods sold 2,589,120 Gross profit 1,790,880 Operating expenses 837,620 Net income $953,260 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 18,300 toasters at $7.67 each from Luna Company of Ciudad Juarez....
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (352,800 units) Cost of goods sold Gross profit Operating expenses Net income $4,379,000 2,605,680 1,773,320 837,900 $935,420 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 19,100 toasters at $7.99 each from Luna Company of Ciudad Juarez....
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,200 units) $4,375,000 Cost of goods sold 2,595,000 Gross profit 1,780,000 Operating expenses 839,300 Net income $940,700 Cost of goods sold was 77% variable and 23% fixed; operating expenses were 87% variable and 13% fixed. In September, Moonbeam Company receives a special order for 18,500 toasters at $8.03 each from Luna Company of Ciudad...
PLEASE HELP!
Exercise 20-3
Moonbeam Company manufactures toasters. For the first 8 months
of 2017, the company reported the following operating results while
operating at 75% of plant capacity:
Sales (350,800 units)
$4,374,000
Cost of goods sold
2,606,000
Gross profit
1,768,000
Operating expenses
841,000
Net income
$927,000
Cost of goods sold was 67% variable and 33% fixed; operating
expenses were 77% variable and 23% fixed.
In September, Moonbeam Company receives a special order for 21,100
toasters at $8.04 each from...
Exercise 21-3 Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,200 units) Cost of goods sold Gross profit Operating expenses Net income $4,375,000 2,598,000 1,777,000 840,500 $936,500 Cost of goods sold was 67% variable and 33% fixed; operating expenses were 77% variable and 23% fixed. In September, Moonbeam Company receives a special order for 21,700 toasters at $7.97 each from Luna Company...