At Crane Electronics, it costs $32 per unit ($19 variable and $13 fixed) to make an MP3 player that normally sells for $46. A foreignwholesaler offers to buy 3,180 units at $26 each. Crane Electronics will incur special shipping costs of $4 per unit. Assuming thatCrane Electronics has excess operating capacity, indicate the net income (loss) Crane Electronics would realize by accepting the specialorder. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)RevenuesCosts-Variable manufacturingShippingLANet income$LAThe special order should beRejectOrder+AAcceptOrder+A$$+ANet IncomeIncrease (Decrease)

Special Order Details (Variable Cost Only)Selling price offered per unit: $26Additional shipping…

Answered: At Crane Electronics, it costs $32 per…

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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Required: a. if arturito will accept the special order, what is the incrementak benefit(loss)?
A business received an offer from an exporter for 10,000 units of product at a special price of $15.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 12 Fixed 5 What is the amount of the gain or loss from acceptance of the offer? a. $8,000 loss b. $15,000 loss c. $35,000 gain d. $30,000 gain
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) $ $ $ $
Jacoby Company received an offer from an exporter for 20,500 units of product at $19 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $24 Unit manufacturing costs: Variable $9 Fixed $5 What is the differential revenue from the acceptance of the offer? a.$389,500 b.$881,500 c.$102,500 d.$492,000
Problem 7-18 Relevant Cost Analysis in a Variety of Situations [LO 7-2, LO 7-3, LO 7-4] Andretti Company has a single product called a Dak. The company normally produces and sells 81,000 Daks each year at a selling price of $46 per unit. The company's unit costs at this level of activity are given below: 2$ 11.00 1.90 5.00 ($405,000 total) 4.70 5.50 ($445,500 total) $ 35.60 Direct materials 7.50 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit A number of questions relating to the production and sale of Daks follow. Each question is independent.
SASA Trading involves in making bottled sauce called kicap. Currently, the company operating below its full capacity. The photos is the financial report for the year of 2021. Additional information: There’s one direct seller offered to purchase 7,000 bottles of kicap at $0.9 per bottle. Due to below selling price and its production cost per unit, the company is unwilling to accept the order. Requirements: a) Determine whether SASA Trading should accept or reject the order. Show the computations. b) Before making decision, discuss the relevant qualitative factors that need to be considered on whether to accept or reject it.
Zozan Corp. manufactures Hydrogen engines automobiles. The variable cost is $41,000 per unit, and the credit price is $44,000 each. Credit is extended for one period, and based on historical experience, payments for 11% of the orders are never collected. The required return is 3% per period. Assuming a repeat customer, should it be filled by the firm? The customer will not buy if credit is not extended (Do not use the $ sign. if your answer is -$123,456.78, then enter -123456.78).
Jacoby Company received an offer from an exporter for 26,200 units of product at $19 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $24 Unit manufacturing costs: Variable Fixed 10 d. $131,000 3 The differential revenue from the acceptance of the offer is O a. $628,800 O b. $497,800 Oc. $1,126,600 O
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
Or it can expressed as the investor sells goods to the associate for 65,000 (selling price), the selling price includes a mark up on cost of 30%. Profit made by seller= 65,000 * 0.3/1+0.3= 15,000 My instructor told me that in order to solve this problem, I need to convert the markup into the gross profit and then multiply it by the selling price. I didn’t get the idea of converting the markup into GP. Refering to the question, that is 0.3/1+0.3. If possible, please analyse this bit. That is all I need Thanks

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