(b) RG Motors has been approached by a new customer with an offer to purchase 5,000 units of its hand-free, Wi-Fi-enabled automotive model – the SMART, at a price of RM18,000 per automobile. RG’s other sales would not be affected by this new customer offer. RG normally produces 100,000 units of its SMART model per year but only plans to produce and sell 90,000 units in the coming year. The normal sales price is RM35,000 per SMART. Unit cost information for the normal level of activity is as follows: [RG Motors telah didatangi oleh pelanggan baru dengan tawaran untuk membeli 5,000 unit bebas tangan, model automotif berkemampuan Wi-Fi Jualan lain RG tidak akan terkesan dengan tawaran pelanggan baru ini. RG kebiasaannya menghasilkan 100,000 unit model SMARTnya setiap tahun tetapi hanya merancang untuk menghasilkan dan menjual 90,000 unit pada tahun akan datang. Harga jualan normal adalah RM35,000 setiap SMART. Maklumat kos unit untuk tahap aktiviti normal adalah seperti berkut:] SMART, pada harga RM18,000 setiap automobil. Table 7: Production Costs [Jadual 7: Kos-kos Pengeluaran] Total Cost RM Direct materials Direct labor Variable overhead 10,000 2,000 4,000 Fixed overhead 8,000 Total 24,000 Fixed overhead will not be affected by whether or not the special order is accepted. [Overhed tetap tidak akan terkesan sama ada tempahan khas diterima atau tidak.] Required: [Dikehendaki:] (i) List the relevant costs and benefits of the two alternatives of the special order. [Senaraikan kos-kos relevan dan faedah-faedah dua alternatif tempahan khas.] (ii) Propose whether operating income increase or decrease if the order is accepted with calculation details. [Cadangkan sama ada pendapatan operasi meningkat atau menurun jika tempahan diterima dengan perincian pengiraan.]
(b) RG Motors has been approached by a new customer with an offer to purchase 5,000 units of its hand-free, Wi-Fi-enabled automotive model – the SMART, at a price of RM18,000 per automobile. RG’s other sales would not be affected by this new customer offer. RG normally produces 100,000 units of its SMART model per year but only plans to produce and sell 90,000 units in the coming year. The normal sales price is RM35,000 per SMART. Unit cost information for the normal level of activity is as follows: [RG Motors telah didatangi oleh pelanggan baru dengan tawaran untuk membeli 5,000 unit bebas tangan, model automotif berkemampuan Wi-Fi Jualan lain RG tidak akan terkesan dengan tawaran pelanggan baru ini. RG kebiasaannya menghasilkan 100,000 unit model SMARTnya setiap tahun tetapi hanya merancang untuk menghasilkan dan menjual 90,000 unit pada tahun akan datang. Harga jualan normal adalah RM35,000 setiap SMART. Maklumat kos unit untuk tahap aktiviti normal adalah seperti berkut:] SMART, pada harga RM18,000 setiap automobil. Table 7: Production Costs [Jadual 7: Kos-kos Pengeluaran] Total Cost RM Direct materials Direct labor Variable overhead 10,000 2,000 4,000 Fixed overhead 8,000 Total 24,000 Fixed overhead will not be affected by whether or not the special order is accepted. [Overhed tetap tidak akan terkesan sama ada tempahan khas diterima atau tidak.] Required: [Dikehendaki:] (i) List the relevant costs and benefits of the two alternatives of the special order. [Senaraikan kos-kos relevan dan faedah-faedah dua alternatif tempahan khas.] (ii) Propose whether operating income increase or decrease if the order is accepted with calculation details. [Cadangkan sama ada pendapatan operasi meningkat atau menurun jika tempahan diterima dengan perincian pengiraan.]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![(b)
RG Motors has been approached by a new customer with an offer to purchase 5,000
units of its hand-free, Wi-Fi-enabled automotive model – the SMART, at a price of
RM18,000 per automobile. RG’s other sales would not be affected by this new
customer offer. RG normally produces 100,000 units of its SMART model per year but
only plans to produce and sell 90,000 units in the coming year. The normal sales price
is RM35,000 per SMART. Unit cost information for the normal level of activity is as
follows:
[RG Motors telah didatangi oleh pelanggan baru dengan tawaran untuk membeli 5,000 unit bebas
tangan, model automotif berkemampuan Wi-Fi – SMART, pada harga RM18,000 setiap automobil.
Jualan lain RG tidak akan terkesan dengan tawaran pelanggan baru ini. RG kebiasaannya menghasilkan
100,000 unit model SMARTnya setiap tahun tetapi hanya merancang untuk menghasilkan dan menjual
90,000 unit pada tahun akan datang. Harga jualan normal adalah RM35,000 setiap SMART. Maklumat
kos unit untuk tahap aktiviti normal adalah seperti berkut:]
Table 7: Production Costs
[Jadual 7: Kos-kos Pengeluaran]
Total Cost
RM
Direct materials
10,000
2,000
Direct labor
Variable overhead
4,000
8,000
Fixed overhead
Total
24,000
Fixed overhead will not be affected by whether or not the special order is accepted.
[Overhed tetap tidak akan terkesan sama ada tempahan khas diterima atau tidak.]
Required:
[Dikehendaki:]
(i)
List the relevant costs and benefits of the two alternatives of the special order.
[Senaraikan kos-kos relevan dan faedah-faedah dua alternatif tempahan khas.]
(ii)
Propose whether operating income increase or decrease if the order is accepted with
calculation details.
[Cadangkan sama ada pendapatan operasi meningkat atau menurun jika tempahan diterima dengan
perincian pengiraan.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c826206-9bfb-4235-8cd3-ad5d75d7ab81%2F68897319-5042-44ed-bd5a-3ffc8948f320%2Ffx0ueqc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b)
RG Motors has been approached by a new customer with an offer to purchase 5,000
units of its hand-free, Wi-Fi-enabled automotive model – the SMART, at a price of
RM18,000 per automobile. RG’s other sales would not be affected by this new
customer offer. RG normally produces 100,000 units of its SMART model per year but
only plans to produce and sell 90,000 units in the coming year. The normal sales price
is RM35,000 per SMART. Unit cost information for the normal level of activity is as
follows:
[RG Motors telah didatangi oleh pelanggan baru dengan tawaran untuk membeli 5,000 unit bebas
tangan, model automotif berkemampuan Wi-Fi – SMART, pada harga RM18,000 setiap automobil.
Jualan lain RG tidak akan terkesan dengan tawaran pelanggan baru ini. RG kebiasaannya menghasilkan
100,000 unit model SMARTnya setiap tahun tetapi hanya merancang untuk menghasilkan dan menjual
90,000 unit pada tahun akan datang. Harga jualan normal adalah RM35,000 setiap SMART. Maklumat
kos unit untuk tahap aktiviti normal adalah seperti berkut:]
Table 7: Production Costs
[Jadual 7: Kos-kos Pengeluaran]
Total Cost
RM
Direct materials
10,000
2,000
Direct labor
Variable overhead
4,000
8,000
Fixed overhead
Total
24,000
Fixed overhead will not be affected by whether or not the special order is accepted.
[Overhed tetap tidak akan terkesan sama ada tempahan khas diterima atau tidak.]
Required:
[Dikehendaki:]
(i)
List the relevant costs and benefits of the two alternatives of the special order.
[Senaraikan kos-kos relevan dan faedah-faedah dua alternatif tempahan khas.]
(ii)
Propose whether operating income increase or decrease if the order is accepted with
calculation details.
[Cadangkan sama ada pendapatan operasi meningkat atau menurun jika tempahan diterima dengan
perincian pengiraan.]
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