Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,000 golf discs is: Materials $ 6,750 Labor 21,000 Variable overhead 14,250 Fixed overhead 29,250 Total $71,250 Crane also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 4,500 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Crane. If Crane accepts the offer, its fixed overhead will increase from $29,250 to $33,750 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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- Gruden Company produces golf discs which it normally sells to retailers for $7 each. Gruden also incurs 5% sales commission ($0.35) on each disc sold. The cost of manufacturing 20,000 golf discs is: Materials $10,000 Labor 30,000 Variable overhead 20,000 Fixed overhead 40,000 Total $100,000 McGee Corporation offers Gruden $4.80 per disc for 5,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, it will incur a one-time fixed cost of $6,000 due to the rental of an imprinting machine. No sales commission will result from the special order. a. Prepare an incremental analysis for the special order. b. Should Gruden accept the special order? Why or why not? c. What assumptions underlie the decision made in part (b)?Gadson Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,000 golf discs is: Materials $ 10,000 Labor 30,000 Variable overhead 20,000 Fixed overhead 40,000 Total $100,000 Gadson also incurs 5% sales commission ($0.35) on each disc sold.Johnson Corporation offers Gadson $4.80 per disc for 5,000 discs. Johnson would sell the discs under its own brand name in foreign markets not yet served by Gadson. If Gadson accepts the offer, its fixed overhead will increase from $40,000 to $46,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Prepare an incremental analysis for the special order. RejectOrder AcceptOrder Net IncomeIncrease(Decrease) Revenues $ $ $ Materials Labor Variable overhead Fixed overhead…Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,100 golf discs is: Materials Labor Variable overhead Fixed overhead Total Crane also incurs 6% sales commission ($0.42) on each disc sold. McGee Corporation offers Crane $5.00 per disc for 4,600 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Crane. If Crane accepts the offer, it will incur a one-time fixed cost of $4,840 due to the rental of an imprinting machine. No sales commission will result from the special order. Assume there is sufficient capacity to accommodate the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Materials Labor Variable overhead Cost of equipment rental Net income $ 7,852 21,744 14,496 30,502 $74,594 (b) Crane should 69 $ $ Should Crane accept the special…
- Old man Joe sells playlist online. current year a sales volume is 500,000 playlists. Old man Joe has been selling the lists $10 each.The variable costs consist of the $5 unit (playlist) purchase price of themusic rights. Old man Joe's annual fixed cost are 200,000 (assume that 50% of the fixed cost are direct product costs and the remaining 50% are selling and administrative) and his company is subject to a 40 % income tax rate. Based on the original problem information, calculate the margin of safety and operating leverage. Explain what they mean.Tamarisk Company produces golf discs, which it normally sells to retailers for $8 each. The cost of manufacturing 20,400 golf discs is: Materials Labour Variable overhead Fixed overhead Total $11,424 29,988 19,380 Tamarisk also incurs 10% sales commission ($0.80) on each disc sold. Oak Corporation offers Tamarisk $4.80 per disc for 5,100 discs. Oak would sell the discs under its own brand name in foreign markets not yet served by Tamarisk. If Tamarisk accepts the offer, it will incur a one-time fixed cost of $5,400 due to the rental of an imprinting machine. No sales commission will result from the special order. Less 39,500 Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,275.) $100,292 Incremental contribution margin $ Fixed cost Incremental income V Incremental cost: $Old man Joe sells playlist online. current year a sales volume is 500,000 playlists. Old man Joe has been selling the lists $10 each.The variable costs consist of the $5 unit (playlist) purchase price of themusic rights. Old man Joe's annual fixed cost are 200,000 (assume that 50% of the fixed cost are direct product costs and the remaining 50% are selling and administrative) and his company is subject to a 40 % income tax rate. Create a cintribution margin statement for the current year. Include CM ratio and gross margin ratio. Calculate old man joe companys break even point for the current year in the number of playlists and in total dollars. Management expects the sale volume will increase by 10% for the new year and the price old man joe pays for the music rightd to increase 40 % next year. if the unit selling price will increase by 5% calculate the new contribution margin statement. would there be any tax? why or why not? Based on the original problem information calculate the…
- Casio Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,000 golf discs is: Materials $ 10,000 Labor 30,000 Variable overhead 20,000 Fixed overhead 40,000 Total $100,000 Casio also incurs 5% sales commission ($0.35) on each disc sold.McGee Corporation offers Casio $4.8 per disc for 5,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Casio. If Casio accepts the offer, its fixed overhead will increase from $40,000 to $46,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order.A) Prepare an incremental analysis for the special order B) Should Casio accept the special order? Why or why not?Roe manufactures and sells cloth facial masks. Per unit direct material and direct labor costs are $1 and $2 respectively. Other than these costs, Roe pays $1,000 for rent, $1,500 for the floor manager's salary, and recognizes $300 depreciation on the equipment every month. Roe sells each mask at $10. If Roe sells 500 masks, what would be Roe's total revenue and total costs? Group of answer choices Total revenue: 5,000; Total costs: 1,500 Total revenue: 5,000; Total costs: 4,300 Total revenue: 3,500; Total costs: 1,500 Total revenue: 3,500; Total costs: 2,800Sheridan Dish Printery publishes the best-selling Captain Cajun Cookbook that sells for $7. The company incurs variable costs of $2 per cookbook and total fixed costs are $260,600. If the company's tax rate is 20%, how many cookbooks must be sold to generate $176,000 in net income? cookbooks
- Adiwele Ltd has a financial year end of 31 March. The entity manufactures Compact Discs for resale. The manufacturing cost per compact disc is R2 per unit. Finished units of the compact disc are sold at R2.5 per unit. On 31 March 2021, Adiwele Ltd had 100 500 units of compact discs in stock. To sell this products Adiwele Ltd will incur the following costs: Sales commission of 20 cents per unit, Additional designing costs of 25 cents per unit, Advertising and packaging costs of 23 cents per unit, Salaries for administrative staff of R6 000 per month. Adiwele Ltd measures inventory at lower of cost and net realisable value as per IAS 2, Inventories according to IFRS at year end. What is the value of the closing inventory on 31 March 2021 as per IAS 2? 1.251 250 2. 201 000 3. 208 035 4. 136 035 5. 244 215Zorro Company buys from wholesalers and resells a single product that costs $10 each unit. All purchases are paid in cash. There is a sales commission paid of 20% on each unit sold. Sales commissions and sales proceeds are also all in cash. Each unit sells for $30. In year 1 the firm purchased 20,000 units and sold 15,000 units. In year 2 it purchased 20,000 units and sold 17,800 units. The firm uses FIFO inventory method for inventory costing. Required 1: Assuming no other transaction happened, the amount of gross Sales Revenue in year 2 is: $ Required 2: Assuming no other transaction happened, the amount of gross margin on sales in year 2 is: $ Required 3: Assuming no other transaction happened, what was the profit on sales for year 2? $Roadside Inc. manufactures the Megalite, and is reviewing the product's cost structure. Accounting records show these costs:factory space: $250,000 per yearinsurance: $47,000 per yearsupervisor salaries: $125,000 per yearmaterials: $5.00 per lampdirect labor: $2.69 per lamprecycling charge: $0.37 per lampRoadside Inc sells the Megalite to wholesalers for $13.69 each. Calculate Roadside's contribution margin as percent of selling price on the Megalite. (Rounding: tenth of a percent. Report 25.3%, for example, as "25.3".)