he production cost information for Blossom's Salsa is as follows: Blossom's Salsa Production Costs April 2020 Production 23, 000 Jars of Salsa Ingredient cost (variable) $13,800 Labor cost (variable ) 9,660 Rent (fixed) 4,300 Depreciation (fixed) 6,000 Other (fixed) 1,400 Total $35, 160 The company is currently producing and selling 345,000 jars of salsa annually. The jars sell for $7.00 each. The company is considering lowering the price to $6.30. Suppose this action will increase sales to 391,000 jars. What is the incremental cost associated with producing an extra 46, 000 jars of salsa?

Bonita, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows. Quarter   Units   First   78,400   Second   147,000   Third   539,000   Fourth   117,600   Annual total   882,000   Bonita incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.40 per unit. Bonita will incur fixed manufacturing costs of $705,600 and fixed nonmanufacturing costs of $1,058,400. Bonita will sell its product for $4 per unit. (a)     Determine the amount of net income Bonita will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach.

Carla Vista Company purchases sails and produces sailboats. It currently produces 1,250 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Carla Vista purchases sails at $262 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $94 for direct materials, $84 for direct labor, and $90 for overhead. The $90 overhead is based on $77,500 of annual fixed overhead that is allocated using normal capacity. The president of Carla Vista has come to you for advice. "It would cost me $268 to make the sails," she says, "but only $262 to buy them. Should I continue buying them, or have I missed something?" (a) Prepare a per unit analysis of the differential costs. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct material Direct labor Variable overhead Purchase price Total unit cost Make Sails Carla Vista should tA…

OSN Company uses 10,000 units per year of machine tools each costing OMR 80. Placing each order costs OMR 288 and the carrying cost is 5% per year of the average inventory. (a) What is Economic Order Quantity? (b) If the company gets 5% discount if it places an order of 2,500 units, should the company accept the discount offer or not?.