Incremental analysis
Waterloo Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overheads $12 (75% variable). Waterloo Co. has sufficient capacity to accept a special order for 40,000 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Determine whether Waterloo Co. should accept the special order. Determine whether to accept special order.
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Waterloo Co. sells product P-14 at a price of $48 a unit. The per-unit cost data...
Waterloo Co. sells product P-14 at a price of $48 a unit. The
per-unit cost data are direct materials $16, direct labour $11, and
overhead $16 (75% variable). Waterloo Co. has sufficient capacity
to accept a special order for 35,300 units, but at a discount of
25% from the regular price. Selling costs associated with this
order would be $4 per unit. Determine whether Waterloo Co. should
accept the special order. (Enter loss with a negative
sign preceding the number,...
Waterloo Co. sells product P-14 at a price of $46 a unit. The per-unit cost data...
Waterloo Co. sells product P-14 at a price of $46 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $16 (75% variable). Waterloo Co. has sufficient capacity to accept a special order for 39,100 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Determine whether Waterloo Co. should accept the special order. (Enter loss with a negative sign preceding the number,...
(22 marks) QUESTION 1 Sheefeni CC normally produces and sells 40 000 units of product A each year. The company'...
(22 marks) QUESTION 1 Sheefeni CC normally produces and sells 40 000 units of product A each year. The company's cost structure at this level of activity is given below: Total Per unit N$ N$ Direct materials Direct labour 320 000 Total production overheads (see note 2) Variable selling expenses Fixed selling expenses (see note 3) 2 3 4 320 000 Total 22 Additional notes: 1. Product A normally sells for N$35 per unit. 2. It has been observed that...
Adams Furniture receives a special order for 10 sofas for a special price of $4,400. The...
Adams Furniture receives a special order for 10 sofas for a special price of $4,400. The direct materials and direct labor for each sofa are $170. In addition, supervision and other fixed overhead costs average $220 per sofa. a1. What is the impact on operating income from accepting the special order? a2. Based solely on a short-term financial analysis, should Adams accept the special order? b1. If Adams is currently operating at full capacity, what would be the opportunity cost...
Questions 8-10 are based on the following revenue and cost structure: Selling price per unit: Variable...
Questions 8-10 are based on the following revenue and cost structure: Selling price per unit: Variable cost per unit: S 100 S 40 $12,000 40% Total fixed costs: ax rate on operating income: CPA Adapted] Theta Company sells product A at a selling price of S40 per unit. Theta's cost per unit based on the full capacity of 500,000 units is as follows: S 6 Direct materials Direct labour Indirect manufacturing (60% of which is fixed) 10 S19 A one-time-only...
varazz mad unoagmozouo vapaUILy oTIanaio tro poia orc. i Data Table Requirements 0.0 1. Prepare an incremental analysis...
varazz mad unoagmozouo vapaUILy oTIanaio tro poia orc. i Data Table Requirements 0.0 1. Prepare an incremental analysis to determine whether Rec- Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. Variable costs: $ Direct materials 0.13 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec Cardz must spend $5,100 to develop this hologram, which will be useless after the special order is completed. Should Rec...
Edo Ltd produces cricket bats for kids that it sells for $37 each. At capacity, the...
Edo Ltd produces cricket bats for kids that it sells for $37 each. At capacity, the compan produce54 000 bats a year. The costs of producing and selling 54 000 bats are as follow Total costs Cost per bat $14 Direct materials $756 000 Direct production labour 4 216 000 Variable production overhead 108 000 Fixed production overhead 270 000 108 000 Variable selling expenses Fixed selling expenses 162 000 Total costs $1 620 000 ----------------- ----- ---- -------- 1....
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 40,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 25 $ 1,000,000 Direct labor 6 240,000 Variable manufacturing overhead 3 120,000 Fixed manufacturing overhead 7 280,000 Variable selling expense 4 160,000 Fixed selling expense 6 240,000 Total cost $ 51 $ 2,040,000 The Rets normally sell for $56...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company...
Polaski Company manufactures and sells a single product called a
Ret. Operating at capacity, the company can produce and sell 40,000
Rets per year. Costs associated with this level of production and
sales are given below:
HIGHLIGHT ANSWERS!! HIGHLIGHT ANSWERS!! HIGHLIGHT
ANSWERS!! HIGHLIGHT ANSWERS!!
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 40,000 Rets per year. Costs associated with this level of production and sales are given below:...
KidSport Ltd produces cricket bats for kids that it sells for $37 each. At capacity, the...
KidSport Ltd produces cricket bats for kids that it sells for
$37 each. At capacity, the company can produce54 000 bats a year.
The costs of producing and selling 54 000 bats are as follows:
KidSport Ltd produces cricket bats for kids that it sells for $37 each. At capacity, the company car produce54 000 bats a year. The costs of producing and selling 54 000 bats are as follows: Total costs Cost per bat $14 $756 000 Direct materials...
Waterloo Co. sells product P-14 at a price of $48 a unit. The
per-unit cost data are direct materials $16, direct labour $11, and
overhead $16 (75% variable). Waterloo Co. has sufficient capacity
to accept a special order for 35,300 units, but at a discount of
25% from the regular price. Selling costs associated with this
order would be $4 per unit. Determine whether Waterloo Co. should
accept the special order. (Enter loss with a negative
sign preceding the number,...
(22 marks) QUESTION 1 Sheefeni CC normally produces and sells 40 000 units of product A each year. The company's cost structure at this level of activity is given below: Total Per unit N$ N$ Direct materials Direct labour 320 000 Total production overheads (see note 2) Variable selling expenses Fixed selling expenses (see note 3) 2 3 4 320 000 Total 22 Additional notes: 1. Product A normally sells for N$35 per unit. 2. It has been observed that...
Questions 8-10 are based on the following revenue and cost structure: Selling price per unit: Variable cost per unit: S 100 S 40 $12,000 40% Total fixed costs: ax rate on operating income: CPA Adapted] Theta Company sells product A at a selling price of S40 per unit. Theta's cost per unit based on the full capacity of 500,000 units is as follows: S 6 Direct materials Direct labour Indirect manufacturing (60% of which is fixed) 10 S19 A one-time-only...
varazz mad unoagmozouo vapaUILy oTIanaio tro poia orc. i Data Table Requirements 0.0 1. Prepare an incremental analysis to determine whether Rec- Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. Variable costs: $ Direct materials 0.13 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec Cardz must spend $5,100 to develop this hologram, which will be useless after the special order is completed. Should Rec...
Edo Ltd produces cricket bats for kids that it sells for $37 each. At capacity, the compan produce54 000 bats a year. The costs of producing and selling 54 000 bats are as follow Total costs Cost per bat $14 Direct materials $756 000 Direct production labour 4 216 000 Variable production overhead 108 000 Fixed production overhead 270 000 108 000 Variable selling expenses Fixed selling expenses 162 000 Total costs $1 620 000 ----------------- ----- ---- -------- 1....
Polaski Company manufactures and sells a single product called a
Ret. Operating at capacity, the company can produce and sell 40,000
Rets per year. Costs associated with this level of production and
sales are given below:
HIGHLIGHT ANSWERS!! HIGHLIGHT ANSWERS!! HIGHLIGHT
ANSWERS!! HIGHLIGHT ANSWERS!!
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 40,000 Rets per year. Costs associated with this level of production and sales are given below:...
KidSport Ltd produces cricket bats for kids that it sells for
$37 each. At capacity, the company can produce54 000 bats a year.
The costs of producing and selling 54 000 bats are as follows:
KidSport Ltd produces cricket bats for kids that it sells for $37 each. At capacity, the company car produce54 000 bats a year. The costs of producing and selling 54 000 bats are as follows: Total costs Cost per bat $14 $756 000 Direct materials...
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