At Sandhill Electronics, it costs $31 per unit ($20 variable and $11 fixed) to make an MP3 player that normally sells for $49. A foreignwholesaler offers to buy 3,720 units at $28 each. Sandhill Electronics will incur special shipping costs of $3 per unit. Assuming thatSandhill Electronics has excess operating capacity, indicate the net income (loss) Sandhill Electronics would realize by accepting thespecial order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)RevenuesCosts-VariablemanufacturingShippingNet income$$The special order should be acceptedRejectOrderii$$AcceptOrder104,160(74,400) i(3,720)26,040$$Net IncomeIncrease (Decrease)104,160(74,400)(3,720)26,040

Special order means an order that is not received by the regular or potential customer. This is an…

Answered: At Sandhill Electronics, it costs $31…

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 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 Cullumber Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $51. A foreign 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 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 $ 69 accepted Reject Order $ Accept Order 4 Net Income Increase (Decrease)
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 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 $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 $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.
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
Davao has a potential foreign customer that has offered to buy 1,500 tons at P450 per ton. Assume that all of Davao’s costs would be at the same levels and rates as last year. What net income after taxes would Davao make if it took this order and rejected some business from regular customers so as not to exceed capacity? Answer: 221,500 Without prejudice to your answers to previous questions, and assume that Davao plans to market its product in a new territory. Davao estimates that an advertising and promotion program costing P61,500 annually would need to be undertaken for the next two or three years. In addition, a P25 per ton sales commission over and above the current commission to the sales force in the new territory would be required. How many tons would have to be sold in the new territory to maintain Davao’s current after-tax income of P94,500? Answer: 307.5
Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,300 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,150. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.96, answer the following. a-1. What is the expected profit of granting credit? b. What is the break-even probability of collection?
Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 150 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 2,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? a. 40 packages b. 10 packages O c. 6 packages O d. 14 packages
Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 170 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 3,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? O a. 100 packages O b. 9 packages Oc. 18 packages O d. 15 packages NEXT PAGE ation nere to search W 19:09 DA d0) ENG 07-04-2021 の hp ト」 "prt sc delete home end Dg up %23 96 + backspace num tock R T. P home D F G K enter pause C レ * shift 11 end alt ctrl

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