At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
Q: Linger Industries accept this special order? Yes or No?
A: Sales revenue (420,000 cans @$1.10) $462,000 Less Cost to change the packaged machinery $10,000…
Q: a. Alliance Sdn. Bhd. has offered to purchase 5,000 units of Champ if Excell Bhd. willing to accept…
A: First lets find out the normal profit of the Excel Bhd in normal years before the pandemic:-…
Q: The company sells bikes for $700. The company currently sells 8,500, but has the capacity to…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: It costs a company 14 of variable and 6 of fixed cost to produce a product Z200 that sells for 35. A…
A: Fixed cost is not considered whenever there is unused capacity.
Q: At ABC Company, it costs $30 per unit ($20 variable and $10 fixed) to make a product at full…
A: Sales on special order = No. of units x sales price per unit = 3000 units x $25 per unit = $75,000
Q: Harold, the owner of Sweet Tunes Music, purchased acoustic guitars for $90 each and has marked them…
A: a. Cost price = Purchase Price + Overhead expenses Purchase Price=$90 each Overhead expenses=9% of…
Q: It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production…
A: Relevant cost refers to those cost which is relevant for choosing the best alternative whereas…
Q: At Bargain Electronics, it costs $28 per unit ($15 variable and $13 fixed) to make an MP3 player…
A: Step 1: Workings:
Q: Crystals’. currently makes all sales on credit and offers no cash discount. The firm is considering…
A:
Q: Maize Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that…
A: Relevant cost per unit = Variable cost per unit + Additional costs per unit to imprint a logo = $20…
Q: break-even point?
A: Break even point in units = Fixed cost / Contribution margin per unit
Q: In Washburn’s factory, what is the break-even point for the new line of guitars if the retail price…
A: Answer: (a) Break-even point = $349 BEP quantity = Fixed cost /( Unit price - Unit variable cost)…
Q: It costs Ghala Company OMR 13 of variable and OMR 6 of fixed costs to produce one unit which…
A: The answer is option (e.) [i.e OMR 3,000 Increase] Refer step 2 for explanation
Q: ntegrity inc. sells computor training packages to its business customers at a price of $91 the cost…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: The company has been approached by an overseas distributor who wants to purchase 9,500 units on a…
A: Sales = Variable Cost + Fixed Cost + Profit
Q: The company has received an offer from a Singaporean company to buy 6,000 bird houses at RM28.00 per…
A: Accept or reject is the decision making in cost and management accounting wherein the entity has to…
Q: Determine the differential income or loss per pair of boots from selling to the organization. $…
A: Given is: Normal selling price = $30 per pair Offered selling price = $22 per pair
Q: Rugged Outfitters purchases one model of mountain bike at a wholesale cost of $520 per unit and…
A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…
Q: A third alternative for Miami Industries is to sell the machine as is for a price of $52,000.…
A: Given, Miami Industries received associate order for a bit of special machinery from Jay Company.
Q: A company produces a special new type of TV. The company has fixed costs of $487,000, and it costs…
A: Profit can be defined as the earnings through business operations which is remained with the…
Q: Ace Hardware buys brushes at a wholesale price of PhP 380 each. If the selling price is PhP 627,…
A: Markup rate = (Selling price - Purchase price)/ Purchase price
Q: Make or Buy Decisions “In my opinion, we ought to stop making our own drums and accept that outside…
A: 1. Financial advantage of per drum = making cost of per drum - Buying cost of per drum Financial…
Q: Bluebird Mfg has received a special one time order for 15000 bird feeders at $3.20 per unit.…
A: In the given case, the company is operating at a level of 80% and is able to produce and sell 75,000…
Q: Bramble, Finland's second largest homebuilder, has approached Wilson with an offer to buy 75,000…
A: Contribution Margin analysis :— Contribution margin analysis investigates the residual margin after…
Q: Gelmite & Sons Hardware is considering introducing a cash discount policy to its customers so as to…
A: In such questions, we need to calculate the net profit before tax in each scenario and recommend to…
Q: Crystals’. currently makes all sales on credit and offers no cash discount. The firm is considering…
A: Cash discount = 3% Sales = 400 art pieces Selling Price = R25000 Variable cost per item = R 18750…
Q: Diamond Boot Factory normally sells its specialty boots for $23 a pair. An offer to buy 105 boots…
A: Managerial accounting: Managerial accounting is the process of identifying, measuring, analyzing,…
Q: BM Motors, Inc. employs 40 sales personnel to market its line of luxury automobiles. The average car…
A: An indifference point is a point where both proposals provide the same results.it is also known by…
Q: suppose Diamond is currently producing and selling 54,000 bats. If Diamond accepts Home Run’s offer,…
A:
Q: A corporation charges P30 per unit for their goods. The monthly unit variable cost is P22, while the…
A:
Q: FRANCORP sells product ABC for $60. The variable production cost is $12, the fixed production cost…
A: Minimum price per unit = Total cost / total units
Q: The pipes and plastic company manufactures wiring tools. The company is currently producing well…
A:
Q: Apple Incorporated, the worlds leading manufacturer of mobile phones, currently sells their…
A: Generally, when there is a decrease in the price of a product, the demand of that product rises in…
Q: er year, selling price is R25 000 per art piece, variable cost per item is R18 750, and the average…
A: Given Data: Selling Price R25,000 Variable Cost R18,750 Units Sold 410 Average Collection…
Q: It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production…
A: The question is multiple choice question. Required Choose the Correct Option
Q: Indicate how much income Sunland should recognize in January, February, March, and April.
A: As per IFRS 15, principal has to recognise revenue on a gross basis where as agent has to recognise…
Q: Metalex Roofing Ltd manufactures roofing sheets whose normal selling price is GH¢20 per sheet. The…
A: A manager should make a decision whether to accept a product or not based on the comparison made…
Q: If the special order is accepted, what will be the effect on net income?
A: Computation of effect of net operating income if the special order is accepted is shown below :
Q: Corporation resells one product to a small isolated community. It sells an average of 60 sacks, but…
A:
Q: It costs Crane Company $12 of variable and $5 of fixed costs to produce one bathroom scale which…
A: Since the fixed cost would remain the same disregarding any change in the output till the optimal…
Q: Stellar, Inc. is a distributor of prepaid telephone cards to customers in its convenience stores.…
A: The distributor is the person who purchases the products from the manufacturer and sells the product…
Q: NUBD normally sells its headphones for P40 each. A discount chain is interesting in purchasing…
A: Here in this question, we are required to calculate cost above which company earns profit if accept…
Q: RAF is currently makes all sales on credit and offers no cash discount. The firm is considering…
A: In order to arrive at the conclusion that whether the proposed discount should be offered or not, we…
Q: It costs Sheridan Company $12 of variable and $5 of fixed costs to produce one bathroom scale which…
A: Net income = Sales revenue - Variable costs - Shipping costs Fixed cost is irrelevant to the…
At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs-Variable manufacturing Shipping Net income Reject Order $ Accept Order $ +A $ Net Income Increase (Decrease) $ SA $At Cullumber Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $51. A foreign wholesaler offers to buy 3,580 units at $28 each. Cullumber Electronics will incur special shipping costs of $3 per unit. Assuming that Cullumber Electronics has excess operating capacity, indicate the net income (loss) Cullumber Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs-Variable manufacturing Shipping Net income The special order should be $ 69 accepted Reject Order $ Accept Order 4 Net Income Increase (Decrease)At Blossom Electronics, it costs $33 per unit ($15 variable and $18 fixed) to make an MP3 player that normally sells for $54. A foreign wholesaler offers to buy 4,520 units at $26 each. Blossom Electronics will incur special shipping costs of $1 per unit. Assuming that Blossom Electronics has excess operating capacity, indicate the net income (loss) Blossom Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Revenues Costs-Variable manufacturing Shipping Net income The special order should be Reject Order $ $ Accept Order Net Income Increase (Decrease) $ $ $ $
- At Blossom Electronics, it costs $33 per unit ($15 variable and $18 fixed) to make an MP3 player that normally sells for $54. A foreign wholesaler offers to buy 4,520 units at $26 each. Blossom Electronics will incur special shipping costs of $1 per unit. Assuming that Blossom Electronics has excess operating capacity, indicate the net income (loss) Blossom Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs-Variable manufacturing Shipping Net income The special order should be A +A Reject Order SA +A $ Accept Order Net Income Increase (Decrease) SA $ $At Sandhill Electronics, it costs $31 per unit ($20 variable and $11 fixed) to make an MP3 player that normally sells for $49. A foreign wholesaler offers to buy 3,720 units at $28 each. Sandhill Electronics will incur special shipping costs of $3 per unit. Assuming that Sandhill Electronics has excess operating capacity, indicate the net income (loss) Sandhill Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs-Variable manufacturing Shipping Net income $ $ The special order should be accepted Reject Order i i $ $ Accept Order 104,160 (74,400) i (3,720) 26,040 $ $ Net Income Increase (Decrease) 104,160 (74,400) (3,720) 26,040At Pharoah Electronics, it costs $33 per unit ($19 variable and $14 fixed) to make an MP3 player that normally sells for $55. A foreign wholesaler offers to buy 3,750 units at $28 each. Pharoah Electronics will incur special shipping costs of $1 per unit. Assuming that Pharoah Electronics has excess operating capacity, indicate the net income (loss) Pharoah Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs-Variable manufacturing Shipping Net income The special order should be LA $ Reject Order LA $ tA Accept Order LA $ $ Net Income Increase (Decrease)
- At Bargain Electronics, it costs $28 per unit ($15 variable and $13 fixed) to make an MP3 player that normally sells for $40. A foreign wholesaler offers to buy 3,000 units at $24 each. Bargain Electronics will incur special shipping costs of $1 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order (Enter negative amounts using either a negative sign preceding the number e g 45 or parentheses e g. (45).) ort Reject Accept Order Net Income Order Increase (Decrease) $ Revenues $ $ Costs-Variable manufacturing Shipping $ Net income $ The special order should be earch 3:01 PM ) 11/10/2019 hp 0 ne deleta prt sc 44 14 & ann tACurrent Attempt in Progress - Your answer is partially correct. At Sheridan Electronics, it costs $33 per unit ($18 variable and $15 fixed) to make an MP3 player that normally sells for $42. A foreign wholesaler offers to buy 4,260 units at $29 each. Sheridan Electronics will incur special shipping costs of $1 per unit. Assuming that Sheridan Electronics has excess operating capacity, indicate the net income (loss) Sheridan Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs-Variable manufacturing Shipping Net income $ The special order should be accepted Reject Order 0 0 0 0 Accept Order 123,540 76,680 i 4,260 i 42,600 $ Net Income Increase (Decrease) 123,540 76,680 4,260 42,600Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 150 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 2,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? a. 40 packages b. 10 packages O c. 6 packages O d. 14 packages
- Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 170 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 3,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? O a. 100 packages O b. 9 packages Oc. 18 packages O d. 15 packages NEXT PAGE ation nere to search W 19:09 DA d0) ENG 07-04-2021 の hp ト」 "prt sc delete home end Dg up %23 96 + backspace num tock R T. P home D F G K enter pause C レ * shift 11 end alt ctrlXYZ Company incurs costs of $ 30 per unit ($18 variable and $12 fixed) to make a product that normally sells for $42. A foreign wholesaler offers to buy 6,000 units at $26 each. The special order results in additional shipping costs of $1 per unit. Calculate the increase or decrease in net income the company realizes by accepting the special order, assuming they have excess operating capacity. Should the Company accept the special order? Select one: a. XYZ should reject the special offer to avoid 42,000 loss. b. XYZ should accept the offer to gain 24,000 net income. c. XYZ should accept the offer to gain 42,000 net income. d. XYZ should reject the special offer to avoid 24,000 loss.Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 140 each. The round-trip tickets will be sold for OMR 172 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 4,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? O a. 125 packages O b. 29 packages Oc. 24 packages O d. 13 packages