At Cullumber Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $51. Aforeign 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 realizeby accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)RevenuesCosts-VariablemanufacturingShippingNet incomeThe special order should be$69acceptedRejectOrder$AcceptOrder4Net IncomeIncrease (Decrease)

In the special order can be accepted by the business if it leads to increase the net income for the…

Answered: At Cullumber Electronics, it costs $30…

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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At 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 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) 26,040
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 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 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 tA
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 eg. -45 or parentheses eg (45).) Revenues Costs-Variable manufacturing Shipping Reject Order $ $ Accept Order Net Income Increase (Decrease) $ Net income $ $ $
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.
Current 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 42,600
Patsy Smith is planning to sell her special knife for $15 per unit. She purchases units from alocal distributor for $6 each. She can return any unsold units for a full refund. Fixed costs forbooth rental, including lighting and security are $4500. Required a) Compute the breakeven point in units sold. b) Suppose the unit purchased is $5 instead of $6, the fixed cost increases by $500, butthe selling price is unchanged. Compute the new breakeven point in units sold. c) Using the above data, explain how cost behavior affects Patsy Smith’s decision-making?
Susan Carrie is planning to sell her special pottery for $25 per unit. She purchases units froma local distributor for $11 each. She can return any unsold units for a full refund. Fixed costsfor booth rental, including lighting and security is $8500.Requireda) Compute the breakeven point in units sold. b) Suppose the unit purchased is $9 instead of $11, the fixed cost increases by $2000,but the selling price is unchanged. Compute the new breakeven point in units sold. c) Using the above data, explain how cost behaviour affects Patsy Smith’s decision-making?
Diamond Boot Factory normally sells its specialty boots for $24 a pair. An offer to buy 125 boots for $16 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $9, and special stitching will add another $3 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization.$fill in the blank 1 Income/Loss? Should Diamond Boot Factory accept or reject the special offer? Yes or No

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