Bruce Co. has 4500 units in inventory. It made the product last year at a cost of $54 each. This year's model is much better and the 4500 units can't be sold at last year's regular price. Bruce Co. has two alternatives. It could sell the inventory to a wholesaler for $45 each or it could rework the inventory at a cost of $27900 and then sell them for $63 each. What is the financial impact of reworking the units? Should Bruce sell now or rework? Rework

What is the impact on profit for the year if Nardin Outfitters accepts the special order? (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5, 400, 400 should be entered as 5, 400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Nardin Outfitters has a capacity to produce 18, 500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $ 1,550 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs $ 570 Fixed manufacturing costs 155 Variable selling and administrative costs 145 Fixed selling and administrative costs 115 Total costs $ 985 The company has received a special order for 1,800 tents at a price of $730 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $58 per tent. The special…

Totally Tanked, Inc. sells tank tops. The firm is considering making some changes in order to achieve its goal of increasing its profit.If it makes no changes, the company anticipates the following for the coming year. Maria, one of the company’s managers suggests the following:  “I think if we cut our price to $17 a tank top, we will increase our sales to 3,700,000 tank tops.   I think that will help us achieve our goal” Question: Mr. Big, the CEO, upon hearing Maria’s plan says “This is great!  We should go forward with your plan since we will increase sales by 700,000 tank tops.”  How would you answer Mr. Big?   # of tank tops to be sold                               3,000,000 Selling price per tank top                                    $20 Variable expense per tank top                          $8 Fixed expenses for the year                        $20,000,000

29) Foamsoft sells customized boat shoes. Currently, it sells 16,850 pairs of shoes annually at an average price of $75 a pair. It is considering adding a lower-priced line of shoes which sell for $59 a pair. Foamsoft estimates it can sell 4,500 pairs of the lower-priced shoes but will sell 1,100 fewer pairs of the higher-priced shoes by doing so. What is the estimated value of the erosion cost that should be charged to the lower-priced shoe project?