For Items 7-8 Alex Company is a manufacturer of electronic switches. One of their products, "Sensory Switch," is used as a component of most electrical appliances. Sensory switch has the following financial data Selling Price Variable Costs: Materials Labor per unit: Factory Overhead Shipping and Handling 2418 15' 180 60 Fixed Costs: Factory Overhead 36 Selling and Administrative 14 50 Total 110 Page 3 of 4 During the month, Alex has received a special, one-time order for 1,500 units of Sensory Switch. 7. Assuming that the company has excess capacity that is enough to produce this special order without affecting sales to regular customers, and the company wants to improve its profitability, the price that is acceptable for this special, one-time order is in excess of a. P180. b. P110. c. P60. d. P50. CORY 8. Assuming that Alex is operating at full capacity and that it does not want to incur a loss from this order, the minimum acceptable price is a. P180. b. P110. C. P60. d. P50.

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $990. Selected data for the company’s operations last year follow:         Units in beginning inventory   0 Units produced   200 Units sold   180 Units in ending inventory   20 Variable costs per unit:     Direct materials $ 120 Direct labor $ 340 Variable manufacturing overhead $ 40 Variable selling and administrative $ 30 Fixed costs:     Fixed manufacturing overhead $ 56,000 Fixed selling and administrative $ 24,000     The absorption costing income statement prepared by the company’s accountant for last year appears below:         Sales $ 178,200 Cost of goods sold   140,400 Gross margin   37,800 Selling and administrative expense   29,400 Net operating income $ 8,400     Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of…

Brightstone Tire and Rubber Company has capacity to produce 272,000 tires. Brightstone presently produces and sells 208,000 tires for the North American market at a price of $111 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 32,000 tires for $91.65 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows: Direct materials $42 Direct labor 16 Factory overhead (60% variable) 26 Selling and administrative expenses (40% variable) 22 Total $106 Brightstone pays a selling commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $6 per tire. In addition, Euro has made the order conditional on receiving…

Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield's business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield's operating information for the first six months of the year follows: Operating Cost Month January February March April Number of Bottles Sold 1,080 $ 10,570 1,330 15,670 1,850 16,050 2,480 19,680 3,490 27,350 3,610 34,750 May June Required: 3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. 4. Perform a least-squares regression analysis on Garfield's data. 5. Determine how well this regression analysis explains the data. 6. Using the regression output, create a linear cost equation (ya+ bx) for estimating Garfield's operating costs. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5…