Homework Answers
Minimum price = direct material + direct labor+variable overhead
= $2+3+4 = $9 per unit
Sales price = any amount over $9 per unit
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A company is currently operating at 80% capacity producing 5,000 units. Current cost information relating to this p...
been operating at 90% of capacity or 55,000 units in the current year. The company is...
been operating at 90% of capacity or 55,000 units in the current year. The company is currently selling its product at $35 a unit. Two customers have approached the company to request the purchase of the company's product as follows: Customer (A) requests to purchase 5,000 units of the corporation's product and offers $25 per unit. Customer (B) requests to purchase 10,000 units and offers $23 per unit. Per unit data for the new orders is summarized as follows: 25...
Special Order; Opportunity Cost Alton Inc. is working at full production capacity producing 20,000 units of...
Special Order; Opportunity Cost Alton Inc. is working at full production capacity producing 20,000 units of a unique 11-23 product. Manufacturing costs per unit for the product are as follows: $9 Direct materials Direct labor Manufacturing overhead 10 Total manufacturing cost per unit $27 The per-unit manufacturing overhead cost is based on a $4 variable cost per unit and $120,000 fixed costs. The nonmanufacturing costs, all variable, are $8 per unit, and the sales price is $45 per unit. Sports...
Sycamore Shops has a capacity of 50,000 units and is currently producing and selling 45,000 at...
Sycamore Shops has a capacity of 50,000 units and is currently producing and selling 45,000 at $50 a unit. The present cost structure, on a per unit basis, is: Direct material $20 Direct labour Variable overhead Fixed overhead 10 An order for 7,000 units has been received from a Japanese company at a price of $45 per unit. The order size cannot be reduced. If the order is accepted, profit will: A. Increase by $63,000 B. Increase by $35,000 C....
Sycamore Shops has a capacity of 50,000 units and is currently producing and selling 45,000 at...
Sycamore Shops has a capacity of 50,000 units and is currently producing and selling 45,000 at $50 a unit. The present cost structure, on a per unit basis, is: Direct material $20 Direct labour 10 Variable overhead Fixed overhead An order for 7,000 units has been received from a Japanese company at a price of $45 per unit. The order size cannot be reduced. If the order is accepted, profit will: O A. Decrease by $35,000 OB. Not change OC....
The Morris Company manufactures wiring tools. The company is currently producing well below its full capacity....
The Morris Company manufactures wiring tools. The company is currently producing well below its full capacity. The Baker Company has approached Morris with an offer to buy 5,000 tools at $17.50 each. Morris sells its tools wholesale for $18.50 each; the average cost per unit is $18.30, of which $2.70 is fixed costs. Required: a. If Morris were to accept Baker's offer, what would be the increase in Miller's operating profits? b. Assume that Morris is operating at full capacity....
The Bytown Company produces one product. The cost of producing and selling a single unit of this product at the company'...
The Bytown Company produces one product. The cost of producing and selling a single unit of this product at the company's normal activity level of 70,000 units per month is as follows: Direct Materials $29.60 Direct Labour $ 5.80 Variable Manufacturing Overhead $ 2.50 Fixed Manufacturing Overhead $17.20 Variable Selling & Administrative Expense $ 1.80 Fixed Selling & Administrative Expense $ 6.70 The normal selling price of the product is $72.90 per unit. An order...
Alton Inc. is working at full production capacity producing 37,000 units of a unique product. Manufacturing costs p...
Alton Inc. is working at full production capacity producing 37,000 units of a unique product. Manufacturing costs per unit for the product are as follows: Direct materials Direct labor Manufacturing overhead Total manufacturing cost per unit The per-unit manufacturing overhead cost is based on a $6 variable cost per unit and $111,000 fixed costs. The nonmanufacturing costs, all variable, are $6 per unit, and the sales price is $65 per unit. Sports Headquarters Company (SHC) has asked Alton to produce...
At the Kicher Company’s current activity level of 8,000 units per month, the costs of producing...
At the Kicher Company’s current activity level of 8,000 units
per month, the costs of producing and selling one unit of the
company’s only product are as follows:
Direct materials
$5.00
Direct labour
$6.00
Variable manufacturing overhead
$1.00
Fixed manufacturing overhead
$9.00
Variable selling and administrative expenses
$3.00
Fixed selling and administrative expenses
$4.00
The normal selling price is $26 per unit. An order has been
received from a potential customer overseas for 4,000 units at a
price of $24.00...
Gallerani Corporation has received a request for a special order of 5,000 units of product A90...
Gallerani Corporation has received a request for a special order of 5,000 units of product A90 for $28.50 each. Product A90's unit product cost is $27.85, determined as follows: Direct materials $ 3.35 Direct labor 8.65 Variable manufacturing overhead 7.75 Fixed manufacturing overhead 8.10 Unit product cost $ 27.85 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...
The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full capacity....
The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full capacity. The Benton Company has approached Arthur with an offer to buy 23,000 utensils at $0.80 each. Arthur sells its utensils wholesale for $0.90 each; the average cost per unit is $0.87, of which $0.12 is fixed costs. If Arthur were to accept Benton's offer, what would be the increase in Arthur's operating profits? Multiple Choice $690. $1,610. $1,150. $2,300.
been operating at 90% of capacity or 55,000 units in the current year. The company is currently selling its product at $35 a unit. Two customers have approached the company to request the purchase of the company's product as follows: Customer (A) requests to purchase 5,000 units of the corporation's product and offers $25 per unit. Customer (B) requests to purchase 10,000 units and offers $23 per unit. Per unit data for the new orders is summarized as follows: 25...
Special Order; Opportunity Cost Alton Inc. is working at full production capacity producing 20,000 units of a unique 11-23 product. Manufacturing costs per unit for the product are as follows: $9 Direct materials Direct labor Manufacturing overhead 10 Total manufacturing cost per unit $27 The per-unit manufacturing overhead cost is based on a $4 variable cost per unit and $120,000 fixed costs. The nonmanufacturing costs, all variable, are $8 per unit, and the sales price is $45 per unit. Sports...
Sycamore Shops has a capacity of 50,000 units and is currently producing and selling 45,000 at $50 a unit. The present cost structure, on a per unit basis, is: Direct material $20 Direct labour Variable overhead Fixed overhead 10 An order for 7,000 units has been received from a Japanese company at a price of $45 per unit. The order size cannot be reduced. If the order is accepted, profit will: A. Increase by $63,000 B. Increase by $35,000 C....
Sycamore Shops has a capacity of 50,000 units and is currently producing and selling 45,000 at $50 a unit. The present cost structure, on a per unit basis, is: Direct material $20 Direct labour 10 Variable overhead Fixed overhead An order for 7,000 units has been received from a Japanese company at a price of $45 per unit. The order size cannot be reduced. If the order is accepted, profit will: O A. Decrease by $35,000 OB. Not change OC....
The Morris Company manufactures wiring tools. The company is currently producing well below its full capacity. The Baker Company has approached Morris with an offer to buy 5,000 tools at $17.50 each. Morris sells its tools wholesale for $18.50 each; the average cost per unit is $18.30, of which $2.70 is fixed costs. Required: a. If Morris were to accept Baker's offer, what would be the increase in Miller's operating profits? b. Assume that Morris is operating at full capacity....
Alton Inc. is working at full production capacity producing 37,000 units of a unique product. Manufacturing costs per unit for the product are as follows: Direct materials Direct labor Manufacturing overhead Total manufacturing cost per unit The per-unit manufacturing overhead cost is based on a $6 variable cost per unit and $111,000 fixed costs. The nonmanufacturing costs, all variable, are $6 per unit, and the sales price is $65 per unit. Sports Headquarters Company (SHC) has asked Alton to produce...
At the Kicher Company’s current activity level of 8,000 units
per month, the costs of producing and selling one unit of the
company’s only product are as follows:
Direct materials
$5.00
Direct labour
$6.00
Variable manufacturing overhead
$1.00
Fixed manufacturing overhead
$9.00
Variable selling and administrative expenses
$3.00
Fixed selling and administrative expenses
$4.00
The normal selling price is $26 per unit. An order has been
received from a potential customer overseas for 4,000 units at a
price of $24.00...
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