Solution 1:
Special order price = $51 * 84% = $42.84 per unit
Computation of profit from special order - Polaski company | |
Particulars | Amount |
Sales (9000*$42.84) | $385,560.00 |
Variable Cost: | |
Direct material (9000*$20) | $180,000.00 |
Direct labor (9000*$10) | $90,000.00 |
Variable manufacturing overhead (9000*$3) | $27,000.00 |
Variable selling expenses (9000*$0.50) | $4,500.00 |
Contribution | $84,060.00 |
Additional fixed cost of machine | $18,000.00 |
Financial advantage (disadvantage) | $66,060.00 |
Solution 2:
Price of US army order = Unit product cost + Fixed fee = ($20 + $10 + $3 + $5) + $1.20 = $39.20 per unit
Computation of profit from US Army order - Polaski company | |
Particulars | Amount |
Sales (9000*$39.20) | $352,800.00 |
Variable Cost: | |
Direct material (9000*$20) | $180,000.00 |
Direct labor (9000*$10) | $90,000.00 |
Variable manufacturing overhead (9000*$3) | $27,000.00 |
Contribution | $55,800.00 |
Additional fixed cost | $0.00 |
Financial advantage (disadvantage) | $55,800.00 |
Solution 3:
Regular contribution margin per unit = $51 - ($20 + $10 + $3 + $2) = $16 per unit
Computation of profit from US Army order - Polaski company | |
Particulars | Amount |
Sales (9000*$39.20) | $352,800.00 |
Variable Cost: | |
Direct material (9000*$20) | $180,000.00 |
Direct labor (9000*$10) | $90,000.00 |
Variable manufacturing overhead (9000*$3) | $27,000.00 |
Contribution | $55,800.00 |
Less: Loss of contribution from regular sale (9000*$16) | $144,000.00 |
Financial advantage (disadvantage) | -$88,200.00 |
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produc...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit $ 20 6 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Total $ 680,000 204,000 102,000 238,000 136,000 204,000 $ 1,564,000 The Rets normally sell for $51 each. Fixed manufacturing overhead is $238,000...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit $ 25 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost ONW Total $ 850,000 340,000 102,000 238,000 68,000 204,000 $ 1,802,000 53 The Rets normally sell for $58 each. Fixed manufacturing overhead is...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit ما علما أ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Total $ 850,000 340,000 102,000 238,000 68,000 204,000 $ 1,802,000 ن ا ا The Rets normally sell for $58 each. Fixed manufacturing...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 15 $ 510,000 Direct labor 6 204,000 Variable manufacturing overhead 3 102,000 Fixed manufacturing overhead 5 170,000 Variable selling expense 4 136,000 Fixed selling expense 6 204,000 Total cost $ 39 $ 1,326,000 The Rets normally sell for $44...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 20 $ 680,000 Direct labor 6 204,000 Variable manufacturing overhead 3 102,000 Fixed manufacturing overhead 5 170,000 Variable selling expense 4 136,000 Fixed selling expense 6 204,000 Total cost $ 44 $ 1,496,000 The Rets normally sell for $49...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 42,000 Rets per year. Costs associated with this level of production and sales are given below Total Unit Direct materials $20 $ 840,000 Direct labor 8 336,000 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense 126,000 378,000 9 4 168,000 Fixed selling expense 6 252,000 Total cost 50 2,100,000 The Rets normally sell for $55 each. Fixed manufacturing overhead...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 32,000 Rets per year. Costs associated with this level of production and sales are given below: Unit $ 20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Total $ 640,000 256,000 96,000 224,000 64,000 192,000 $ 1,472,000 $ 46 The Rets normally sell for $51 each. Fixed manufacturing overhead is...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 50,000 Rets per year. Costs associated with this level of production and sales are given below. Unit $15 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Total $ 750,000 400,000 150.000 350,000 200,000 300,000 $ 2,150,000 The Rets normally sell for $48 each. Fixed manufacturing overhead is $350,000 per year...
3 Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 44,000 Rets per year. Costs associated with this level of production and sales are given below: Unit $ 20 points $ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Total 882.ee 440,000 132.000 396.899 176,00 264,00 2.288.888 eBook $ The Rets normally sell for $57 each. Fixed manufacturing overhead...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 46,000 Rets per year. Costs associated with this level of production and sales are given below: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 46,000 Rets per year. Costs associated with this level of production and sales are given below: Unit $ 25 Direct materials Direct labor Variable...