Sheffield Corp. incurred the following costs for 82000 units:Variable costsFixed costsO $15.58O $8.70O $8.88O $10.80$549400Sheffield has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order withoutjeopardizing regular sales. Filling the order will require spending an additional $4200 for shipping.If Sheffield wants to earn $4000 on the order, what should the unit price be?Save for Later392000Attempts: 0 of 1 usedSubmit Answer

Decision making is a fundamental process that we encounter daily, both in our personal lives and…

Answered: Sheffield Corp. incurred the following…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EA: Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special...

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Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?
Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)
Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
Marigold Corp. incurred the following costs for 52000 units: Variable costs $312000 Fixed costs 392000 Marigold has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2400 for shipping. If Marigold wants to earn $4000 on the order, what should the unit price be? O $8.00 O $10.74 O $9.20 O $16.74
Concord Corporation incurred the following costs for 66000 units: Variable costs $396000 Fixed costs 392000 Concord has received a special order from a foreign company for 3500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4900 for shipping.If Concord wants to break even on the order, what should the unit sales price be? $11.94 $7.40 $6.00 $13.34
Sheridan Company incurred the following costs for 54000 units: Variable costs $324000 Fixed costs 392000 Sheridan has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2800 for shipping.If Sheridan wants to earn $4000 on the order, what should the unit price be? $9.40 $10.66 $8.00 $16.66
Martin Company incurred the following costs for 70,000 units:Variable costs $420,000Fixed costs $392,000Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Martin wants to earn $6,000 on the order, what should the unit price be? Group of answer choices $9.70 $15.70 $8.00 $10.10
Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs $392,000 Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Martin wants to earn $6,000 on the order, what should the unit price be? Group of answer choices $9.70 $15.70 $8.00 $10.10
Vaughn Manufacturing has the following costs when producing 100000 units: Variable costs $600000 Fixed costs 900000 An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $167000. The net increase (decrease) in the net income of accepting the supplier's offer is O $317000. O $(17000). O $832000. O $283000.
A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $167. A special order from a foreign company has been received for 5000 units at $135 a unit. In order to fulfill the order, 2000 units of regular sales would have to be foregone.The opportunity cost associated with this order is $184000. $334000. $150000. $270000.
A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5100 units at $135 a unit. In order to fulfill the order, 2900 units of regular sales would have to be foregone.The incremental profit (loss) from accepting the order would be $(99000). $45000. $(153000). $210000.

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