Q2: The cost to produce one unit of the product is: Material  
Q2:
The cost to produce one unit of the product is:
Material $ 12.00
Labor $ 9.00
Variable cost $ 6.00
Fixed expenses $ 18.00
Total fixed expenses: $ 1,440,000
The company’s normal capacity is 100,000 units. The figures given above are for 80,000 units.
The company has received a special offer for 20,000 units for a price of $ 36 per unit from a foreign customer.
Advice the manufacturer on whether the order should be accepted.
Homework Answers
The relevant cost per unit to produce = Material per unit + Labor per unit + Variable cost per unit
= $12 + $9 + $6
= $27
As there is excess capacity of 20,000 units, acceptance of the order results in $9 ($36 - $27) per unit increase in profits
Total profit = 20,000 * $9 = $180,000
The answer is Yes.
The cost to produce one unit of the product is: Material  
The cost to produce one unit of the product is: Material $ 12.00 Labor $ 9.00 Variable cost $ 6.00 Fixed expenses $ 18.00 Total fixed expenses: $ 1,440,000 The company’s normal capacity is 100,000 units. The figures given above are for 80,000 units. The company has received a special offer for 20,000 units for a price of $ 36 per unit from a foreign customer. Advice the manufacturer on whether the order should be accepted.
The cost to produce one unit of the product is: Material &nb
The cost to produce one unit of the product is: Material $ 12.00 Labor $ 9.00 Variable cost $ 6.00 Fixed expenses $ 18.00 Total fixed expenses: $ 1,440,000 The company’s normal capacity is 100,000 units. The figures given above are for 80,000 units. The company has received a special offer for 20,000 units for a price of $ 36 per unit from a foreign customer. Advice the manufacturer on whether the order...
Q 2 The cost to produce one unit of the product is: Material $ 12.00 Labor...
Q 2 The cost to produce one unit of the product is: Material $ 12.00 Labor $ 9.00 Variable cost $ 6.00 Fixed expenses $ 18.00 Total fixed expenses: $ 1,440,000 The company’s normal capacity is 100,000 units. The figures given above are for 80,000 units. The company has received a special offer for 20,000 units for a price of $ 36 per unit from a foreign customer. Advice the manufacturer on whether the order should be accepted.
topic:- Cost accounting * no hand writing *the answer must be unique not copied "plagiarized "...
topic:- Cost accounting * no hand writing *the answer must be unique not copied "plagiarized " Assignment Question(s): Q1. Spaghetti is a family-owned restaurant in KSA. The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations (Riyadh, Jeddah and Dammam). In a recent accounting period, the cost for maintenance was $25,000 and for personnel was $15,000. Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of...
topic:- Cost accounting * no hand writing *the answer must be unique not copied "plagiarized "...
topic:- Cost accounting * no hand writing *the answer must be unique not copied "plagiarized " Assignment Question(s): Q1. Spaghetti is a family-owned restaurant in KSA. The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations (Riyadh, Jeddah and Dammam). In a recent accounting period, the cost for maintenance was $25,000 and for personnel was $15,000. Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of...
Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs...
Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $100 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $75.00 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs...
Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $146 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $77.40 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
Andretti Company has a single product called a Dak. The company normally produces and sells 80,000 Daks each year at a selling price of $58 per unit. The company’s unit costs at this level of activity are given below:
Andretti Company has a single product called a Dak. The company normally produces and sells 80,000 Daks each year at a selling price of $58 per unit. The company’s unit costs at this level of activity are given below: Direct materials$7.50Direct labor9.00Variable manufacturing overhead3.50Fixed manufacturing overhead9.00($720,000 total)Variable selling expenses4.70Fixed selling expenses3.50($280,000 total)Total cost per unit$37.20 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required:1-a. Assume that Andretti Company has sufficient capacity to produce 100,000...
Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs...
Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $100 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $75.00 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
Delta Company produces a single product. The cost of producing and selling a single unit of...
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 106,800 units per year is: Direct materials $ 1.80 Direct labor $ 4.00 Variable manufacturing overhead $ 1.00 Fixed manufacturing overhead $ 3.75 Variable selling and administrative expenses $ 2.10 Fixed selling and administrative expenses $ 3.00 The normal selling price is $24 per unit. The company’s capacity is 139,200 units per year. An order...
Goshford Company produces a single product and has capacity to produce 100,000 units per month. Costs to produce its current sales of 80,000 units follow. The regular selling price of the product is $100 per unit. Management is approached by a new customer who wants to purchase 20,000 units of the product for $75.00 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
Most questions answered within 3 hours.
-
26) Briefly describe, using words or simple diagrams, the
chemiosmotic theory for coupling oxidation to phosphorylation...
asked 12 minutes ago -
Suppose that XX is a random variable with mean 16 and standard
deviation 5 . Also...
asked 1 hour ago -
Calculate the number density of argon gas at a temperature of
24C and a pressure of...
asked 4 hours ago -
Alternative
Classification
How to Estimate
Probabilities from Data? ( For continuous Attributes)
And How to generate...
asked 4 hours ago -
An explosion breaks a 20.0-kg object into three parts. The
object is initially moving at a...
asked 5 hours ago -
Calculate the approximate number of residues of Rubisco, which
is involved in carbon fixation in plants,...
asked 6 hours ago -
Other decisions about scientific claims can have a much broader
impact.ENERGYarrow-10x10.png, environment, health, security - all...
asked 7 hours ago -
I need to write a research paper and work cited about this
topic: The United States...
asked 7 hours ago -
Hello! I was wondering if I could have some help?
If the vapor pressure of carvone...
asked 7 hours ago -
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 8 hours ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 8 hours ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 8 hours ago