ABC Ltd has a division that makes rubber tires for Ford Motors. The division has a fixed cost of $10,000 per month, and it expects to sell 40,000 tires per month. If the variable cost per tire is $ 1.5, what price must the division charge in order to break even?
ABC Ltd has a division that makes rubber tires for Ford Motors. The division has a...
Decision on Accepting Additional Business Miramar Tire and Rubber Company has capacity to produce 238,000 tires. Miramar presently produces and sells 182,000 tires for the North American market at a price of $101.00 per tire. Miramar is evaluating a special order from a South American automobile company, Rio Motors. Rio Motors is offering to buy 28,000 tires for $82.05 per tire. Miramar’s accounting system indicates that the total cost per tire is as follows: Direct materials $38 Direct labor 14...
Decision on Accepting Additional Business Miramar Tire and Rubber Company has capacity to produce 230,000 tires. Miramar presently produces and sells 176,000 tires for the North American market at a price of $115.00 per tire. Miramar is evaluating a special order from a South American automobile company, Rio Motors. Rio Motors is offering to buy 27,000 tires for $97.65 per tire. Miramar's accounting system indicates that the total cost per tire is as follows: Direct materials Direct labor Factory overhead...
Graham Motors manufactures specialty tractors. It has two
divisions: a Tractor Division and a Tire Division. The Tractor
Division can use the tires produced by the Tire Division. The
market price per tire is $60.
Direct material cost per tire $29
Conversion costs per tire $4
(Assume the $4 includes only the variable portion of
conversioncosts.)
Fixed manufacturing overhead cost for the year is expected to
total $114,000. The Tire Division expects to manufacture 57,000
tires this year. The fixed...
III eTextbook: Survey of Accou TT Search Annotations Accessibility Bookmark 2 Rubber Meets the Road Company has capacity to produce 250,000 tires. Rubber Meets the Road presently produces and sells 100,000 tires for the North American market at a price of $20 per tire. Rubber Meets the Road is evaluating a special order from a South American automobile company, Cruising Motors. Cruising Motors is offering to buy 20,000 tires for $10 per tire. Rubber Meets the Road's accounting system indicates...
Gorman Motors manufactures specialty tractors, has two divisions a Tractor Division and a Tire Division The Tractor Division can use the tres produced by the The Division. The man costs per tires Click the loon to view the costs and additional information) price per tre is $50. The Tire Division has the following Read the rec ents e d transfer price policy, what Requirement 1. Assume that the Tire Division has excess capacity, meaning that it can produce tres for...
Decision on Accepting Additional Business Talladega Tire and Rubber Company has capacity to produce 230,000 tires. Talladega presently produces and sells 176,000 tires for the North American market at a price of $109 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 27,000 tires for $89.75 per tire. Talladega's accounting system indicates that the total cost per tire is as follows: Direct materials Direct labor Factory overhead (60% variable)...
Decision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to produce 136,000 tires. Brightstone presently produces and sells 104,000 tires for the North American market at a price of $114 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 16,000 tires for $94 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $43 Direct labor 16 Factory overhead...
Decision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to produce 281,000 tires. Brightstone presently produces and sells 215,000 tires for the North American market at a price of $101 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 33,000 tires for $81.15 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $38 Direct labor 14 Factory overhead...
Decision on Accepting Additional Business Talladega Tire and Rubber Company has capacity to produce 500,000 tires. Talladega presently produces and sells 400,000 tires for the North American market at a price of $200 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 100,000 tires for $150 per tire. Talladega's accounting system indicates that the total cost per tire is as follows: Direct materials $75 Direct labor 20 Factory overhead...
alladega Tire and Rubber Company has capacity to produce 119,000 tires. Talladega presently produces and sells 91,000 tires for the North American market at a price of $102 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 14,000 tires for $84.4 per tire. Talladega’s accounting system indicates that the total cost per tire is as follows: Direct materials $39 Direct labor 14 Factory overhead (60% variable) 23 Selling and...