Which of the following describes an important qualitative factor to consider regarding a special order? Multiple...
Which of the following describes an important qualitative factor to consider regarding a special order?
Multiple Choice
-
The unavoidable fixed costs associated with the special order.
-
The avoidable fixed costs associated with the special order.
-
The incremental revenue that will be generated by the special order.
-
The effect of the sale of special-order units will have on the sale of regularly priced units.
-
The variable costs associated with the special order.
Homework Answers
The most important qualitative factor to consider regarding a special order is the effect of such special order on the sale of units during the normal course of the business. If the normal business gets affected because of the special order, it should not be accepted.
Therefore, answer: The effect of the sale of special-order units will have on the sale of regularly priced units.
Add Answer to:
Which of the following describes an important qualitative factor
to consider regarding a special order?
Multiple...
O make-or-buy QUESTION 19 An important qualitative factor to consider regarding a special order is the...
O make-or-buy QUESTION 19 An important qualitative factor to consider regarding a special order is the O variable costs associated with the special order. O avoidable fixed costs associated with the special order. O effect the sale of special-order units will have on the sale of regularly priced units. O incrementa revenue from the special order. QUESTION 20 Future costs that differ across alternatives are O opportunity costs. O sunk costs. O relevant costs. variable costs
Which factor is not relevant in deciding whether or not to accept a special order? Incremental...
Which factor is not relevant in deciding whether or not to accept a special order? Incremental revenue that will be earned Additional costs that will be incurred The effect that the order will have on the company's regular sales volume and selling prices The average cost of production if the special order is accepted
Which of the following would be considered a relevant fixed cost in making a special order...
Which of the following would be considered a relevant fixed cost in making a special order decision? Unavoidable fixed costs associated with current business. Contribution margin of any current business replaced. Depreciation on existing production equipment. Incremental fixed costs associated with the order.
Question 1: Special order Sales volume in units 80 Revenue $8,000 Variable costs $1,600 Contribution margin...
Question 1: Special order
Sales volume in units
80
Revenue
$8,000
Variable
costs
$1,600
Contribution margin
$6,400
Fixed costs
$1,300
Profit
$5,100
Special order: A client wants to buy 30 units at a discounted
price of $30 per unit. This is a one-time deal (i.e., a short-term
decision). You have enough spare capacity to fulfill this special
order without cutting back on your regular sales.
a) Use the gross approach to decide whether you should take
the special order:
status...
Question 1: Special order Sales volume in units 90 Revenue $8,100 Variable costs $2,700 Contribution margin...
Question 1: Special order Sales volume in units 90 Revenue $8,100 Variable costs $2,700 Contribution margin $5,400 Fixed costs $1,600 Profit $3,800 Special order: A client wants to buy 40 units at a discounted price of $40 per unit. This is a one-time deal (i.e., a short-term decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales. a) Use the gross approach to decide whether you should take the special order: status...
F Question 1: Special order Sales volume in units 120 Revenue $9,600 Variable costs $3,600 Contribution...
F Question 1: Special order Sales volume in units 120 Revenue $9,600 Variable costs $3,600 Contribution margin $6,000 Fixed costs $1,400 Profit $4,600 Special order: A client wants to buy 40 units at a discounted price of $40 per unit. This is a one-time deal (i.e., a short-term decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales. a) Use the gross approach to decide whether you should take the special order:...
Please answer all the question!!! 5. When will the elimination overall profit? a. When the b. When th of a product line have no effect on the company's avoidable fixed costs equal the product...
Please answer all the question!!!
5. When will the elimination overall profit? a. When the b. When th of a product line have no effect on the company's avoidable fixed costs equal the product line's contribution margin e unavoidable fixed costs equal the product line's contribution margin d when there are no fixed costs incurred by the product line d. When the product line contribution margi n is negative 6. All of the following are relevant to the sell or...
A customer has requested that Lewelling Corporation fill a special order for 2,000 units of product...
A customer has requested that Lewelling Corporation fill a special order for 2,000 units of product S47 for $40 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $18.30: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 4.40 6.00 1.50 6.40 $18.30 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing...
Gallerani Corporation has received a request for a special order of 4,200 units of product A90...
Gallerani Corporation has received a request for a special order of 4,200 units of product A90 for $26.80 each. Product A90's unit product cost is $26.20, determined as follows: $ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 2.50 7.80 6.90 9.00 $26.20 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90...
Tullius Corporation has received a request for a special order of 9,600 units of product C64...
Tullius Corporation has received a request for a special order of 9,600 units of product C64 for $47.70 each. The normal selling price of this product is $52.80 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows: Direct materials $18.50 Direct labor 7.80 Variable manufacturing overhead 5.00 Fixed manufacturing overhead 7.90 Unit product cost $39.20 Direct labor is a...
O make-or-buy QUESTION 19 An important qualitative factor to consider regarding a special order is the O variable costs associated with the special order. O avoidable fixed costs associated with the special order. O effect the sale of special-order units will have on the sale of regularly priced units. O incrementa revenue from the special order. QUESTION 20 Future costs that differ across alternatives are O opportunity costs. O sunk costs. O relevant costs. variable costs
Question 1: Special order
Sales volume in units
80
Revenue
$8,000
Variable
costs
$1,600
Contribution margin
$6,400
Fixed costs
$1,300
Profit
$5,100
Special order: A client wants to buy 30 units at a discounted
price of $30 per unit. This is a one-time deal (i.e., a short-term
decision). You have enough spare capacity to fulfill this special
order without cutting back on your regular sales.
a) Use the gross approach to decide whether you should take
the special order:
status...
Please answer all the question!!!
5. When will the elimination overall profit? a. When the b. When th of a product line have no effect on the company's avoidable fixed costs equal the product line's contribution margin e unavoidable fixed costs equal the product line's contribution margin d when there are no fixed costs incurred by the product line d. When the product line contribution margi n is negative 6. All of the following are relevant to the sell or...
A customer has requested that Lewelling Corporation fill a special order for 2,000 units of product S47 for $40 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $18.30: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 4.40 6.00 1.50 6.40 $18.30 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing...
Gallerani Corporation has received a request for a special order of 4,200 units of product A90 for $26.80 each. Product A90's unit product cost is $26.20, determined as follows: $ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 2.50 7.80 6.90 9.00 $26.20 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90...
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