Immanuel Company has just obtained a request for a special order of 6,000 jigs to be shipped at the end of the month at a selling price of $7 each. The company has a production capacity of 90,000 jigs per month with total fixed production costs of $144,000. At present, the company is selling 80,000 jigs per month through regular channels at a selling price of $11 each.  Variable production cost $4.60 Fixed production c

Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year was: Revenues $750,000 330,000 Direct materials Direct labor 60,000 Manufacturing overhead (fixed) 133,000 Manufacturing overhead (variable) 78,000 At the start of the current year, Marcotti received a special order for 16,000 cupcakes to be sold for $1.09 per cupcake. To complete the order, the company must incur an additional $800 in total fixed costs to lease a special machine that will stamp the cupcakes with the customer's logo. This order will not affect any f Marcotti's other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? profit will

Your Company has the capacity to produce 80,000 units. It produces and sells 70,000 units of a product each year. At this level of activity, Clark Company incurs the following unit costs: Direct materials $18 Direct labor 25 Variable overhead 9 Fixed overhead 10 Variable S&A 7 Fixed S&A 12 A special order for 9,000 units under consideration would require the one-time rental of a special machine. The rental is for $36,000. If the order is accepted, $5 of the variable S&A can be avoided. What is the least amount the company can charge per unit in this special pricing decision? (Think breakeven.) O $61 O $56 O $58 O $59 O $57

ardin Outfitters has a capacity to produce 16,500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $1,350 per tent. The cost of producing and selling one tent follows:   Variable manufacturing costs $ 530 Fixed manufacturing costs 135 Variable selling and administrative costs 125 Fixed selling and administrative costs 95 Total costs $ 885 The company has received a special order for 1,400 tents at a price of $690 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 $54 per tent. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations:   Selling price per case $ 690 Variable manufacturing costs 530 Fixed manufacturing costs 135 Variable selling and administrative costs 54 Fixed selling and…

Sohar Manufacturing Company normally produces and sells 30,000 units ofproduct (X) each month. Product (X) is a small electrical relay used as acomponent part in the automotive industry. The selling price is $22 per unit,variable costs are $14 per unit, fixed manufacturing overhead costs total$150,000 per month, and fixed selling costs total $30,000 per month.Employment-contract strikes in the companies that purchase the bulk of theproduct (X) units have caused Sohar Company’s sales to temporarily drop toonly 8,000 units per month. Sohar Company estimates that the strikes will lastfor two months, after which time sales of product (X) should return to normal.Due to the current low level of sales, Sohar Company is thinking about closingdown its own plant during the strike, which would reduce its fixed manufacturingoverhead costs by $45,000 per month and its fixed selling costs by 10%. Startup costs at the end of the shutdown period would total $8,000.Required:As a Senior Manager at Sohar…

Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The company's policy is to have enough material on hand to equal 10% of the next month's production needs and to maintain a finished goods inventory equal to 25% of the next month's production needs. PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56) Cost per Pound Desired Ending Inventory DM per Unit Units to be Produced Pounds Needed for Production Required DM Pounds Beginning Inventory Total Cost of DM Purchase Total DM Required Using the information aboye, along with the terms above, prepare a direct materials (DM) budget…

A company sells one of its products for $13.80 per unit. Its fixed costs are $1,080.00 per month, and the variable cost per unit is $4.80. The production capacity is 625 units per month. (a) The break-even volume, i.e., the level of output at break-even, is per month. (If necessary, round up to the next whole number of units.) (b) The break-even volume as a percent of capacity is your answer to two decimal places.) units (d) The net income at the break-even level of output is $ %. (If necessary, round (c) The break-even revenue, i.e., the total revenue at the break-even level of output, is $ per month.

Birch Company normally produces and sells 49,000 units of RG-6 each month. The selling price is $30 per unit, variable costs are $10 per unit, fixed manufacturing overhead costs total $170,000 per month, and fixed selling costs total $32,000 per month.   Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company’s sales to temporarily drop to only 9,000 units per month. Birch Company estimates that the strikes will last for two months, after which time sales of RG-6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing down its own plant during the strike, which would reduce its fixed manufacturing overhead costs by $41,000 per month and its fixed selling costs by 10%. Start-up costs at the end of the shutdown period would total $15,000. Because Birch Company uses Lean Production methods, no inventories are on hand.   Required: 1. What is the financial advantage (disadvantage) if…

Birch Company normally produces and sells 40,000 units of RG-6 each month. The selling price is $30 per unit, variable costs are $10 per unit, fixed manufacturing overhead costs total $155,000 per month, and fixed selling costs total $36,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company's sales to temporarily drop to only 10,000 units per month. Birch Company estimates the strikes will last for two months, after which time sales of RG-6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing its own plant during the strike, which would reduce fixed manufacturing overhead costs by $46,000 per month and fixed selling costs by 10%. Start-up costs at the end of the shutdown would total $15,000. Because Birch Company uses Lean Production methods, no inventories are on hand. Required: 1. What is the financial advantage (disadvantage) if Birch closes its own plant for…

Phyllis Limited produces a product called SOMUAH. The manufacture of this product requires raw materials per month of 1,000kg and this is even throughout the year. The ordering cost per order is GH₵ 250 and each kilogram costs GH₵ 25.00. Annual holding cost is estimated at 20% of the cost of a kilogram of material. Required: Calculate the following: a) The Economic Order Quantity (EOQ) b)  Annual Inventory Cost