|
Incremental analysis
Incremental revenue (15000*35) | 525000 |
Incremental Cost | |
Direct material (15000*6) | 90000 |
Direct labor | 60000 |
Variable overhead | 90000 |
Total incremental cost | 240000 |
Incremental profit (loss) | 285000 |
Lybrand’s income will
increase
by $285000
Lybrand Company is a leading manufacturer of sunglasses. One of Lybrand’s products protects the eyes from...
Exercise 8-6 Flint Company is a leading manufacturer of sunglasses. One of Flint’s products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Flint about purchasing 16,000 pairs of these sunglasses. Flint’s unit manufacturing cost, based on a full capacity of 116,000 units, is as follows: Direct materials $6 Direct labor 5 Manufacturing overhead (60% fixed) 15 Total manufacturing costs $26 Flint also incurs selling and administrative expenses of $79,500 plus $3 per pair for sales...
Exercise 8-6 Lybrand Company is a leading manufacturer of sunglasses. One of Lybrand's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Lybrand about purchasing 15,000 pairs of these sunglasses. Lybrand's unit manufacturing cost, based on a full capacity of 100,000 units, is as follows: Direct materials $6 Direct labor 4 Manufacturing overhead (60% fixed) 15 Total manufacturing costs $25 Lybrand also incurs selling and administrative expenses of $75,000 plus $2 per pair for sales...
Marigold Company is a leading manufacturer of sunglasses. One of Marigold's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Marigold about purchasing 18,200 pairs of these sunglasses. Marigold's unit manufacturing cost, based on a full capacity of 103,000 units, is as follows: Direct materials Direct labor Manufacturing overhead (60% fixed) 20 Total manufacturing costs Marigold also incurs selling and administrative expenses of $78,930 plus $2 per pair for sales commissions. The company has plenty...
Exercise 8-6 Monty Company is a leading manufacturer of sunglasses. One of Monty's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Monty about purchasing 15,000 pairs of these sunglasses. Monty's unit manufacturing cost, based on a full capacity of 112,000 units, is as follows: Direct materials $6 Direct labor Manufacturing overhead (60% fixed) 20 Total manufacturing costs $30 Monty also incurs selling and administrative expenses of $79,780 plus $2 per pair for sales commissions....
Exercise 8-6 Bridgeport Company is a leading manufacturer of sunglasses. One of Bridgeport's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Bridgeport about purchasing 16,000 pairs of these sunglasses. Bridgeport's unit manufacturing cost, based on a full capacity of 102,000 units, is as follows: Direct materials $7 Direct labor 6 Manufacturing overhead (60% fixed) 20 Total manufacturing costs $33 Bridgeport also incurs selling and administrative expenses of $76,460 plus $3 per pair for sales...
Exercise 8-6 Your answer is partially correct. Try again. Whispering Winds Company is a leading manufacturer of sunglasses. One of Whispering Winds's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Whispering Winds about purchasing 19,900 pairs of these sunglasses. Whispering Winds's unit manufacturing cost, based on a full capacity of 106,000 units, is as follows: Direct materials $6 Direct labor Manufacturing overhead (60% fixed) 20 Total manufacturing costs $30 Whispering Winds also incurs selling...
Tolman Sunglasses sell for about $154 per pair. Suppose that the company incurs the following average costs per pair: E (Click the icon to view the cost information.) Tolman has enough idle capacity to accept a one-time-only special order from Alaska Shades for 25,000 pairs of sunglasses at $83 per pair. Tolman will not incur any variable selling expenses for the order. Read the requirements. Requirement 1. How would accepting the order affect Tolman's operating income? In addition to the...
Complete this problem E8-22A Special order decision and considerations (Learning Objective 3) Jasper McKnight Sunglasses sell for about $150 per pair. Suppose the company incurs the following average costs per pair: $40 12 Direct materials ...... Direct labor Variable manufacturing overhead.... Variable marketing expenses. Fixed manufacturing overhead .......... Total costs...... *$2,100,000 total fixed manufacturing overhead/84,000 pairs of sunglasses $88 Jasper McKnight has enough idle capacity to accept a one-time-only special order from Arizona Glasses for 17,000 pairs of sunglasses at...
Opal Kyler Sunglasses sell for about $145 per pair. Suppose the company incurs the following average costs per pair 囲(Click the icon to view the oost information.) Opal Kyler has encugh idle capacity to accept a one-time-only special order from Alaska Glasses for 18,000 pairs of sunglasses at $93 per pair. Opal Kyler will not incur any variable marketing expenses for the order Read the requirements. Requirement 1. How would accepting the order affect Opal Kyler's operating income? In adcition...
Please do all requirements! Requirements and data table listed Hoover Rouse Sunglasses sell for about $125 per pair. Suppose the company incurs the following average costs per pair: Data Table Direct materials $38 Direct labor 12 Variable manufacturing overhead 10 Variable marketing expenses 3 Fixed manufacturing overhead 16 * Total cost $79 * $2,300,000 total fixed manufacturing overhead / 143,750 pairs of sunglasses Rouse has enough idle capacity to accept a one-time-only special order from Colorado Glasses for 17,000 pairs...