Reliable traders has given the following information for a unit of its most popular product: Direct materials 8 Direct labor 3 Overhead (40% variable) 5 Cost to manufacture 16 Desired markup (50%) 8 Target selling price 24 The above cost information is based on 4,200 units. A foreign distributor has offered to buy 1,200 units at a price of $18 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $1 per unit for the special order. If the special order is accepted, Minton's operating profits will increase by: a. $1,200. b. $1,920. c. $2,400. d. $4,800. 00

Reliable traders has given the following information for a unit of its most popular product: Direct materials 8 Direct labor 3 Overhead (40% variable) 5 Cost to manufacture 16 Desired markup (50%) 8 Target selling price 24 The above cost information is based on 4,200 units. A foreign distributor has offered to buy 1,200 units at a price of $18 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $1 per unit for the special order. If the special order is accepted, Minton's operating profits will increase by: a. $1,200. b. $1,920. c. $2,400. d. $4,800. 00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Following information for per unit of its product produced are given: Direct materials=P8 Direct labor=P3 Overhead (40% variable)=P5 Cost to manufacture=P16 Desired markup (50%)=P8 Target selling price=P24.00 The above cost information is based on 4,200 units. A outside distributor has offered to buy 1,200 units at a price of 18 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional 1 per unit for the special order. If the special order is accepted, what will be the operating profits and its increase.
The Minton Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor Overhead (50% variable) Cost to manufacture Desired markup (50%) Target selling price The above cost information is based on 4,500 units. A foreign distributor has offered to buy 1,500 units at a price of $19 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $1 per unit for the special order. If the special order is accepted, Minton's operating profits will increase by: Multiple Choice $3,000 $3,750. $6 4 6 16 8 $ 24 $4,500.
UKJPQX588 Corp. has provided the following cost, price, and sales data: Selling price Variable expenses Contribution margin Multiple Choice $ O $ (ID#87952) UKJPQX588 is currently selling 6,400 units per month. UKJPQX588's Fixed expenses are $896,000 per month. O LA UKJPQX588's sales manager is planning to cut the selling price by $20 and increase advertising spending by $36,000 per month. UKJPQX588's manager above believes that these changes would increase monthly sales quantity by 20%. (Baruch College Exam) Q) What would be the overall effect on UKJPQX588's monthly net operating income of this change? O (Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income) Per Unit 44,768 dollars. 224 46 178 -6,920 dollars -10,752 dollars
Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: Сaрacity 300,000 Demand 250,000 Selling price $135 VC per unit $78 Total FC $150,000 Division B would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made each period. If Division A sells to Division B rather than to outside customers, the variable cost be unit would be $5 lower. What should be the lowest acceptable transfer price from the perspective of Division A? an outside company for $38 per unit Division B requires 5,000 units of the part
Gladstorm Enterprises sells a product for $48 per unit. The varlable cost is $32 per unit, while fxed costs are $10,560. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units units b. Break-even point in sales units if the selling price Increased to $62 per unit units
Gladstorm Enterprises sells a product for $52 per unit. The variable cost is $37 per unit, while fixed costs are $13,770. Determine the: Round to the nearest whole number of units. a. Break-even point in sales units _ b. Determine the break-even point in sales units if the selling price increased to $64 per unit _ units
Commercial Carpets manufactures custom mats. The details on its standard run of a 1 mx 2 m mat is as follows: Quantity Unit Selling Price Unit Variable Cost Fixed Costs 320 $56 $31 $1,900 A prospective customer has indicated it would purchase 20% more mats than the standard order if the unit price could be reduced by $2. Assuming no changes to the cost structure, should the sales manager accept this order?
The following information is available for Division X of Meisels, Inc.: Fixed cost per unit (based on capacity) Variable cost per unit Capacity in units Selling price to outside customers $5.25 $32 24,000 $41 Division Y would like to purchase 6,000 units each year from Division X. Division X has enough excess capacity to handle all of Division Y's needs. Division Y now purchases from an outside supplier at a price of $39 and insists that it should be charged that same price by Division X. If Division X refuses to accept the $39 price for transfers to Division Y, what effect would this have on the total annual profit of Meisels, Inc.?
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Alawi Company currently sells 10,000 units of product M for P 18.00 each. Variable costs are P 8.00 per unit. A discount store has offered P 16.00 for 4,000 units of product M. The managers believe that if they accept the special order, they will lose some sales at the regular price. Determine the number of units Alawi could lose before the order became unprofitable. a. 2,000 unitsb. 2,667 unitsc. 3,200 unitsd. 5,000 units
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Your answer is partially correct. Novak Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $12, and overhead $16 (75% variable). Novak has no excess capacity to accept a special order for 38,200 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Novak would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) Novak Co. should not accept eTextbook and Media Save for Later $ -382000 the special order. Attempts: 2 of 3 used Submit Answer