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Blue Technologies manufactures and DVD players. Great Products Company has offered Blue Technologies $23 per DVD...
Blue Technologies manufactures and sells DVD players. Great Products Company has offered Blue Technologies $ 20 per DVD player for 10,000 DVD players. BlueTechnologies' normal selling price is $ 33 per DVD player. The total manufacturing cost per DVD player is $ 19 and consists of variable costs of $ 12 per DVD player and fixed overhead costs of $ 7 per DVD player. (NOTE: Assume excess capacity and no effect on regular sales.) Should Blue Technologies accept or reject...
Rexeleg Company manufactures a product with the following costs per unit at the expected production of 40,000 units: Direct materials $5 Direct labor 10 Variable overhead 7 Fixed overhead 9 The company has the capacity to produce 50,000 units. The product regularly sells for $50. A wholesaler has offered to pay $43 per unit for 3,000 units. If the firm chooses to accept the special order and reject some regular sales, the effect on operating income would be a: a.$30,000...
Truman Company manufactures a DVD player called Orlicon. The company sells the player to discount stores throughout the country. Click the icon to view additional information.) Information about the current period (2017) and last period (2016) follows. Click the icon to view the information for 2017 and 2016.) Suppose that during 2017, the market for DVD players grew 10%. All increases in market share (that is, sales increases greater than 10%) and decreases in the selling price of the Orlicon...
JC Bico Manufacturing produces and sells oil filters for $3.35 each. A retailer has offered to purchase 20,000 oil filters for $1.70 per liter of the total manufacturing cost per filter of $2.15, $1.25 is the variable manufacturing cost per Niter. For this special order, JCBilco would have to buy a special stamping machine that costs $8,000 to mark the customer's logo on the special-order oil filters. The machine would be scrapped when the special order is complete. This special...
Inscribe, Inc. manufactures and sells pens for $6.00 each. Cubby Corp. has offered Inscribe, Inc. $4.00 per pen for a one-time order of 3,500 pens. The total manufacturing cost per pen is $1.00 per unit and consists of variable costs of $0.80 per pen and fixed overhead costs of $0.20 per pen. Assume that Inscribe, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would...
how would operating income be affected
Widget Inc. manufactures widgets The company has the capacity to produce 100.000 widgets per year but it curenty produces and sels 75.000 widpets per year. The following information relates to curent production $44 Sale price per unit Variable costs per unit $25 Manufacturing Marketing and administrative S6 Total fixed costs Manulacturing Marketing and administrative S75.000 $24.000 taspecial sales order is accepted for 6200 widgets ata price of $35 per unt, and ed costs increase...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year The following information relates to current production: Sales price per unit $40 Variable costs per unit Manufacturing Marketing and administrative $22 $5 Total fixed costs: $78,000 $25,000 Manufacturing Marketing and administrative If a snecial eales order is accented for 6.900 widoets at a.price.of $42.ner.unit and fixed.costs.remain unchanned how would oneratinn income.he affected2.(NOTE Decrease by $103,500...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit S41 Variable costs per unit Manufacturing Marketing and administrative $23 $6 Total fred costs: Manufacturing $75,000 Marketing and administrative $24,000 Ha enorial sales are arranter for 5 winnettarin 37 narunt fiv e remain unchanged and a variable marketing and aiministrativash will O A. Increase...
Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: $44 Sale price per unit Variable costs per unit: Manufacturing Marketing and administrative $24 $5 otal fixed costs: Manufacturing Marketing and administrative $75,000 $25,000 Fa special sales order is accepted for 8,200 widgets at a price of $36 per unit, and fixed costs increase by $12,000, how would...
Kendrick Company manufactures a DVD player called Orlicon. The company sells the player to discount stores throughout the country. (Click the icon to view additional information.) Information about the current period (2017) and last period (2016) follows. (Click the icon to view the information for 2017 and 2016.) Suppose that during 2017, the market for DVD players grew 15%. All increases in market share (that is, sales increases greater than 15%) and decreases in the selling price of the Orlicon...