Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 27,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Materials $0.23 per roll Labor 0.39 per roll Variable overhead 0.15 per roll Fixed overhead 0.20 per roll A potential supplier has offered to sell Reuben the rolls for $0.87 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? Reuben would see a $ in profit if he buys the rolls.
Q: Daily Kneads, Inc., is thinking about having one of its products made by a supplier. The supplier…
A: Relevant incremental cost of making each unit = Relevant cost per unit where, Relevant cost per unit…
Q: Top-of-the-Line Company sells bicycles helmets and scooter helmets. The bicycle helmets are priced…
A: Combined sale mix will be calculated by dividing one product sale with total products sales in…
Q: cat ine. Has been manufacturing its own Camera for its Mobile Phone. The company is currently…
A: Make or buy decision is a technique used by a manufacturing organization to decide whether to make…
Q: Calla Company produces skateboards that sell for $50 per unit. The company currently has the…
A: While taking decision regarding the acceptance of order, additional revenue shall be compared with…
Q: Tris Technology Company produces a fibre cloth that could easily wipe away any dirt and water. The…
A: Special orders have separate terms and conditions then regular orders and a company has to…
Q: A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop…
A: Here in this question, we are required to calculate break even point in unit and make a graphical…
Q: Diamond Brands manufactures rice, wheat, and oat cereals. Sanders Company has approached Diamond…
A:
Q: Every year Blue Industries manufactures 7,300 units of part 231 for use in its production cycle. The…
A: a) Compute the total relevant cost to make part 231:
Q: Widgeon CO. Manufactures three products: Bales, Tales, and Wales. The selling prices are, $55, $78,…
A: Contribution margin per unit of limited resource = Contribution margin per unit / Machine hours…
Q: Daffy Duct, Inc., has the capacity to produce 12,000 cases of duct tape per year but only produces…
A: Answer = $5,000 (profit) Computation of additional Operating Income / (Loss) accepting new offer…
Q: Reuben’s Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually…
A: Relevant costs or avoidable costs are those costs that are relevant to the decision, i.e., the cost…
Q: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling…
A:
Q: Slugger Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the…
A: The decision to accept the special order is taken by calculating the increase in net operating…
Q: Carson Manufacturing, Inc., sells a single product for $34 per unit. At an operating level of 8,000…
A: revenue earned from Special Order will be 2000 Units * $18 per unit= $36,000.
Q: Matchless Computer Company has been purchasing carrying cases for its portable computers at a…
A: Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February'24…
Q: Lewis Auto Company manufactures a part for use in its production of automobiles. When 1,000 items…
A: Whenever business has alternatives of either make the product or buy the product, then total costs…
Q: Just-A-Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the…
A: The differential analysis is performed to analyse the making and buying decisions and impact of…
Q: Shilling Manufacturing produces and sells oil filters for $3.25 each. A retailer has offered to…
A: The question is based on the concept of Financial Management.
Q: SixthZ currently produces and sells 1,200 treehouses per year and sells them at $1200 per treehouse.…
A: Introduction: Current stakeholders in a general company have equal financial and legal obligations.…
Q: Slugger Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the…
A: Tactical decision making: Tactical decision making is a process in which the company can choose…
Q: Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The…
A:
Q: Snow Ride manufactures snowboards. Its cost of making 1,900 bindings is as follows: Direct…
A: 1) Analysis Make Buy Difference Variable Cost 22,870 31,350 8480 Plus: Fixed Cost 6,300…
Q: Terra Nova, Inc. has the capacity to rewire 300 vehicle wiring harnesses per day. The expected…
A: As per the given data, Vehicle bays rent will be a fixed cost because it won’t change with the…
Q: Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 37,867 rolls annually…
A: In order to compute the profit on accepting the offer from the supplier, a comparison of Total cost…
Q: Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes…
A: Management accounting is the process of using financial information for internal purpose so that…
Q: the amount of the relevant costs that would be saved by using the released facilities in the…
A: Given in the question: Production (in Units) 20000 Cost per unit is as below: Direct…
Q: Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a…
A: At the optimal production level, short-term gains are maximized. It is the output at which the…
Q: Foundations, Inc. produces and sells cosmetic products. Currently, the company is operating at…
A:
Q: Slugger Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the…
A: The decision to accept the special order is taken by calculating the increase in net operating…
Q: A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop…
A: The question is related to Breakeven point sales. The Breakeven point is that level of sales at…
Q: Every year Riverbed Industries manufactures 7,300 units of part 231 for use in its production cycle.…
A: A make or buy decision is the act of choosing between whether to produce in-house or purchase from…
Q: Stefani Company has gathered the following information about its product. Direct materials: Each…
A: Compute the pounds of materials required: Pounds of materials required = 3.40 + 0.60 Pounds of…
Q: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling…
A: Absolute advantage refers to an individual, company, region, or country's ability to create more of…
Q: ABC Co. uses one raw material type in its manufacturing process. It needs 3,750 kilos of its…
A:
Q: HASF Glassworks makes glass flanges for scientific use Material cost $ 1 per flange and the glass…
A: WE KNOW THAT, net operating income = sales - variable cost - fixed cost given that, fixed cost =…
Q: What is Oat Treats' relevant cost? What does Simmons Cereal's offer cost? If Oat Treats accepts…
A: The calculation of relevant cost, offer cost and the incremental dollar amount is shown hereunder :…
Q: Reuben’s Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually…
A: As per the Bartleby Guidelines we are supposed to answer only 3 sub parts please re post the…
Q: Suppose Diamond is currently producing and selling 44,000 bats. At this level of production and…
A: Incremental analysis is made by the company to make the decision of accepting or rejecting a…
Q: Ancinas Company produces printers and uses a standard part in the manufacture of several of its…
A: Total purchase cost = No. of parts x Purchase cost per part from outside supplier = 43000 x $5.00…
Q: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling…
A: Incremental Revenue = Special order no. of units x Special order sales price per unit = 1,200 x $26…
Q: Schopp Inc. has been manufacturing its own shades for its table lamps. The compan is currently…
A: The company is currently operating at 100% capacity Variable manufacturing overhead charged @70% of…
Q: Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has…
A: In special order, relevant cost of the product is compared with the selling price of the product.…
Q: HH Co. uses corrugated cardboard to ship its product to customers. Currently, the company’s returns…
A: The overheads are indirect costs which are necessary for the production process but commonly used by…
Q: A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop…
A: Breakeven points may be used in a lot of different situations. The breakeven point in a property,…
Q: SixthZ currently produces and sells 1,200 treehouses per year and sells them at $1200 per treehouse.…
A: Introduction: After deducting the expenses and the cost of sales from income, operating income is…
Q: Every year Blue Industries manufactures 7,300 units of part 231 for use in its production cycle. The…
A: Relevant costs: These are the costs a business computes to decide whether to continue or close a…
Q: Stefani Company has gathered the following information about its product. Direct materials: Each…
A: Standard cost per unit $ Material cost (5+1 pounds) x $1 x 95%* 5.7 Freight cost (6…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in the prior year was: At the start of the current year, Cinnamon Depot received a special order for 18,000 rolls to be sold for $1.50 per roll. The company estimates it will incur an additional $1,000 in total fixed costs in order to lease a special machine that forms the rolls in the shape of a heart per the customers request. This order will not affect any of its other operations. Should the company accept the special order? (Show your work.)Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $360 for 5,000 copies and $280 for 3,000 copies, how much would Markson pay if it made 7,500 copies?Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year was: At the start of the current year, Marcotti received a special order for 15,000 cupcakes to be sold for $1.10 per cupcake. To complete the order, the company must incur an additional $700 in total fixed costs to lease a special machine that will stamp the cupcakes with the customers logo. This order will not affect any of Marcottis other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? (Show your work.)
- Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the production of the boxed lunches. The costs to make the cookies are: A potential supplier has offered to sell Country Diner the cookies for $0.85 each. If the cookies are purchased, 10% of the fixed overhead could be avoided. If Jason accepts the offer, what will the effect on profit be?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?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?
- Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?Justine Corporation currently makes rolls for deli sandwiches it produces. It uses 40,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are given below: Materials $0.24 per roll Labor $0.40 per roll Variable overhead $0.16 per roll Fixed overhead $0.20 per roll A potential supplier has offered to sell Justine the rolls for $0.95 each. If the rolls are purchased, 20% of the fixed overhead could be avoided. If Justine accepts the offer, what will the effect on profit be? $4,400 increase in profit $1,200 increase in profit $3,300 increase in profit $3,300 decrease in profit $4,400 decrease in profitReuben’s Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Reuben's Deli cost data Costs Amounts Increments Materials $0.24 per roll Labor 0.40 per roll Variable overhead 0.16 per roll Fixed overhead 0.20 per roll A) A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. What are the total relevant costs? B) A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what are the total costs to purchase the rolls? C) A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? D) A potential supplier has…
- Reuben’s Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Reuben's Deli cost data Costs Amounts Increments Materials $0.24 per roll Labor 0.40 per roll Variable overhead 0.16 per roll Fixed overhead 0.20 per roll A) A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. What are the total relevant costs? B) A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what are the total costs to purchase the rolls?Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 31,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Materials $0.24 per roll Labor 0.39 per roll Variable overhead 0.16 per roll Fixed overhead 0.20 per roll A potential supplier has offered to sell Reuben the rolls for $0.89 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? decline in profit if he buys the rolls. Reuben would see a $Reuben’s Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Reuben's Deli cost data Costs Amounts Increments Materials $0.24 per roll Labor 0.40 per roll Variable overhead 0.16 per roll Fixed overhead 0.20 per roll C) A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? D) A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. Should Reuben buy or make the rolls? (Buy the rolls or Make the rolls) E) A potential supplier has offered to sell Reuben the rolls for $0.98 each. If the rolls are purchased, 26% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? Do…