(a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, eg. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses eg. (45)) Revenues Cost of goods sold Operating expenses Net income (b) $ Crane Company Reject Order Should Crane accept the special order? the special order. Accept Order 5 Net Income Increase (Decrease) H
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- Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.Evans Company had total sales of 3,000,000 for fiscal 20x5. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution. 3. What if, five years from now, quality costs are 7.5 percent of sales, with control costs being 65 percent of the total quality costs? What would your conclusion be?
- Cullumber Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (358,400 units) Cost of goods sold Gross profit Operating expenses Net income (a) Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Cullumber receives a special order for 24.500 toasters at $8.38 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 of shipping costs but no increase in fixed costs. Revenues Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cost of goods sold Operating expenses $4,377.000 2,590,720 1,786.280 837.760 Net…Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (341,600 units) $4,375,000 Cost of goods sold 2,610,800 Gross profit 1,764,200 Operating expenses 841,190 Net income $923,010 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.In September, Moonbeam receives a special order for 23,100 toasters at $7.85 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.(a)Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)…Crane Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (364,000 units) Cost of goods sold Gross profit Operating expenses Net income Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Crane receives a special order for 18,600 toasters at $7.95 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, eg. 15.25 and all other computations and final answers to the nearest whole dollar, eg. 5,725. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg (45)) Revenues Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2…
- Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,000 units) $4,375,000 Cost of goods sold 2,600,000 Gross profit 1,775,000 Operating expenses 840,000 Net income $935,000 Cost of goods sold was 70% variable and 30% fixed. Operating expenses were 80% variable and 20% fixed. Moonbeam receives aspecial order for 15000 toasters at $7.60 each from Luna Company. Acceptance of the order would result in an additional $3000 of shipping cost but no increase in fixed assets. a) Prepare an incremental analysis for the special orderb) Should Moonbeam accept the special order. Why or why not?Blossom Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Amount Per Unit Sales $5,040,000 $50.00 Cost of goods sold 3,528,000 35.00 Selling and administrative expenses 453,600 4.50 Net income $1,058,400 $10.50 Fixed costs for the period were cost of goods sold of $1,008,000, and selling and administrative expenses of $181,440.In July, normally a slack manufacturing month, Blossom receives a special order for 10,080 basketballs at $32.00each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fixed costs and expenses. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and…CraneManufacturing Inc. had sales of $3.00 million for the first quarter of 2022. In making the sales, the company incurred the following costs and expenses: Cost of goods sold Selling expenses Administrative expenses Variable $920,000 73,000 87,000 Fixed $448,500 CRANE MANUFACTURING INC. CVP Income Statement 42,000 95,500 Prepare a CVP income statement for the quarter ended March 31, 2022. K
- AN Vieiol Group has collected the following information after its first year of sales. Sales were €1,600,000 on 100,000 units, selling expenses €250,000 (40% variable and 60% fixed), direct materials €490,000, direct labor €290,000, administrative expenses €270,000 (20% variable and 80% fixed), and manufacturing overhead €380,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. Required 1. Prepare the CVP income statement for the current year and projected year. 2. Explain the change in net income between current and projected year in terms of revenue and costs change. 3. Compute the break-even point in units and sales for current year. 4. The company has a target net income of €200,000. What are the required sales for the company to meet its target? 5. If the company meets its target net income number, by what percentage could its sales fall…First Company manufactures knife sets. For the first ten months of 2021, the company reported the following operating results while operating at 80% of plant capacity: Sales (500,000 units) $90,000,000 Cost of goods sold 54,000,000 Gross profit 36,000,000 Operating expenses 24,000,000 Net income $12,000,000 An analysis of costs and expenses reveals that variable cost of goods sold is $85 per unit and variable operating expenses are $35 per unit. In November, Firsts Cutlery Company receives a special order for 30,000 knife sets at $135 each from a major retail shop franchise. Acceptance of the order would result in $10,000 of shipping costs but no increase in fixed expenses. Instructions (a) Evaluate and Determine Whether to Accept or Reject this Special Order.Crane Inc. had sales of $2,390,000 for the first quarter of 2022 (it sold 239,000 units). In making the sales, the company incurred the following costs and expenses. Cost of goods sold Selling expenses Administrative expenses Sales Prepare a CVP income statement for the quarter ended March 31, 2022. (Round per unit answers to 2 decimal places, e.g. 15.25.) Variable Costs Contribution Margin Fixed Costs Variable $976,000 116,000 103,000 Net Income/(Loss) Fixed $488,000 95,000 129,000 CRANE INC. CVP Income Statement For the Quarter Ended March 31, 2022 V Total $ Per Unit Percent of Sales 100 % % %