Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 80,000 units per month is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling & administrative expense Fixed selling & administrative expense Per Unit $ 22.50 $ 7.50 $ 1.70 $ 19.00 $ 2.70 $ 8.60

Gadubhai

Swiatek Corporation produces a single product and has the following cost structure:       The variable costing unit product cost is:

Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 99.600 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 1.80 $ 3.00 $ 0.60 $4.35 $ 1.60 $ 2.00 The normal selling price is $26.00 per unit. The company's capacity is 133.200 units per year. An order has been received from a mail- order house for 2,800 units at a special price of $23.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special ordes, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels…

Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 80,000 units per month is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling & administrative expense Fixed selling & administrative expense $ 22.50 $ 7.50 $ 1.70 $ 19.00 $ 2.70 $ 8.60 The normal selling price of the product is $67.80 per unit. An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.90 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production…

Mega Corporation's relevant range of activity is 15,000 units to 20,000 units. When it produces and sells 15,000 units, its average costs per unit are as follows: Average Cost per Unit $5.90 $4.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $1.95 $10.00 O D. $26.20 $4.55 $1,90 $ 0.70 $0.75 If the selling price is $40.00 per unit, the contribution margin per unit sold is closest to: OA$13.95 OB. $6.50 OC. (3025)

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 48,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit Total $ 25 $ 1,200,000 6 288,000 3 144,000 5 240,000 2 96,000 6 288,000 $ 47 $ 2,256,000 The Rets normally sell for $52 each. Fixed manufacturing overhead is $240,000 per year within the range of 40,000 through 48,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 40,000 Rets through regular channels next year. A large retail chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company…

Psaki Inc. manufactures and sells a single product called a Shiner. Operating at capacity, the company can produce and sell 22,000 Shiners per year. Costs associated with this level of production and sales are as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit Total $16.00 $ 352,000 9.00 198,000 4.00 88,000 10.00 220,000 4.00 88,000 132,000 6.00 $49.00 $1,078,000 The Shiners normally sell for $54 each. Fixed manufacturing overhead is constant at $220,000 per year within the range of 15,000 through 22,000 Shiners per year. Required: 1. Assume that, due to a recession, Psaki Company expects to sell only 15,000 Shiners through regular channels next year. A large retail chain has offered to purchase 7,000 Shiners if Psaki is willing to accept a price lower than the regular $54. There would be no sales commissions on this order; thus, variable selling expenses would be slashed…

W A Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: Direct Materials.. $18.00 Direct Labor... Variable Manufacturing OH... Fixed Manufacturing OH. Variable S&A... Fixed S&A.. $6.80 Q. What is the minimum price A. $ $1.90 $5.10 $2.40 $11.60 The normal selling price of the product is $49.1 per unit. (16 An order has been received from an overseas customer for 1,000 units to be delivered this month at a special discounted price. This order would not change the total amount of the Company's fixed costs. The variable selling and administrative expense would be $0.10 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is not enough idle capacity to produce all the units for the overseas customer and accepting the special order would require cutting back on production of 100 units for regular…

Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 Beta $ 15 30 30 18 16 26 29 23 19 26 21 $ 163 $ 130 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. oundational 11-13 (Algo) . Assume that Cane's customers would buy a maximum of 91,000 units of Alpha and 71,000 units of Beta. Also assume that the raw aterial available for production is limited to 225,000 pounds. How many units of…