Brilliant, Inc. reported the following results from the sale of 31,000 units of IT-54:
Sales | $ | 546,000 | |||
Variable manufacturing costs | 310,000 | ||||
Fixed manufacturing costs | 124,000 | ||||
Variable selling costs | 54,800 | ||||
Fixed administrative costs | 36,400 | ||||
Extra Company has offered to purchase 3,700 IT-54s at $13 each.
Brilliant has available capacity, and the president is in favor of
accepting the order. She feels it would be profitable because no
variable selling costs will be incurred. The plant manager is
opposed because the "full cost" of production is $14. Which of the
following correctly notes the change in income if the special order
is accepted?
Variable manufacturing costs per unit | 10 | =310000/31000 |
Incremental revenue | 48100 | =3700*13 |
Less: Incremental costs | 37000 | =3700*10 |
Net Change in income | 11100 | |
$11,100 increase |
Brilliant, Inc. reported the following results from the sale of 31,000 units of IT-54: Sales $...
Chang Industries has 2,000 defective units of product that have already cost $14 each to produce. A salvage company will purchase the defective units as they are for $7 each. Chang's production manager reports that the defects can be corrected for $15 per unit, enabling them to be sold at their regular market price of $21. Chang should: Scrap the units. Sell the units to the salvage company for $7 per unit. Sell the units as they are because repairing...
MANAGERIAL ACCOUNTING HANDOUT PROBLEM 11 Name Section Problem (10 points). Cindy Richards, the manager of Rockford Company, was deliberating over an offer for an order requesting 7,000 boxes of birthday greeting cards. Rockford was operating at 70% of its capacity of 30,000 boxes and could use the extra business. Unfortunately, the order's offering price of $7.75 per box was below the cost to produce the cards. The controller was opposed to taking a loss on the deal. However, the personnel...
Cindy Richards, the manager of Rockford Company, was deliberating over an offer for an order requesting 7,000 boxes of birthday greeting cards. Rockford was operating at 70% of its capacity of 30,000 boxes and could use the extra business. Unfortunately, the order's offering price of $7.75 per box was below the cost to produce the cards. The controller was opposed to taking a loss on the deal. However, the personnel manager argued in favor of accepting the order even though...
Managerial accounting, please show work
Cindy Richards, the manager of Rockford Company, was deliberating over an offer for an order requesting 7,000 boxes of birthday greeting cards. Rockford was operating at 70% of its capacity of 30,000 boxes and could use the extra business. Unfortunately, the order's offering price of $7.75 per box was below the cost to produce the cards. The controller was opposed to taking a loss on the deal. However, the personnel manager argued in favor of...
Crane Corporation reported the following results from the sale of 4920 units in March: sales $246000, variable costs $147600, fixed costs $73800, and operating income $24600. Assume that Crane increases the selling price by 10% on April 1. How many units will have to be sold in April to maintain the same level of operating income? 2460. O 4920 3936. 4428
Question 24 Concord reported the following results from the sale of 5000 units in May: sales $270000, variable costs $150000, fixed costs $90000, and net income $30000. Assume that Concord increases the selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income? O 4500. 4750. 5000. 4494.
Determine the amount of sales (units) that would be necessary
under
Break-Even Sales Under Present and Proposed Conditions
Darby Company, operating at full capacity, sold 113,400 units at
a price of $81 per unit during the current year. Its income
statement for the current year is as follows:
Sales
$9,185,400
Cost of goods sold
4,536,000
Gross profit
$4,649,400
Expenses:
Selling expenses
$2,268,000
Administrative expenses
2,268,000
Total expenses
4,536,000
Income from operations
$113,400
The division of costs between fixed and variable...
Break-Even Sales Under Present and Proposed Conditions Portmann Company operating at full capacity, sold 1,000,000 units at a price of $187 per unit during the current year. Its income statement is as follows Sales $187,000,000 Cost of goods sold (102,000,000) Gross profit $85,000,000 Expenses Selling expenses $16,000,000 Administrative expenses 7,200,000 Total expenses (23,200.000) Operating income $61,800,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative...
determine the amount of sale units that wpuld be necessary under
break-even sales present and proposed conditons . stuck on
questions 5-7
eBook Show Me How Calculator Print Item Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 70,200 units at a price of $75 per unit during the current year. Its income statement for the current year is as follows: Sales $5,265,000 2,600,000...
Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present and Proposed Conditions Darby Company, operating at full capacity, sold 112,050 units at a price of $129 per unit during the current year. Its income statement for the current year is as follows: Sales $14,454,450 Cost of goods sold 7,138,000 Gross profit $7,316,450 Expenses: Selling expenses $3,569,000 Administrative expenses 3,569,000 Total expenses 7,138,000 Income from operations $178,450 The division of costs between fixed and variable...