Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392.000 Martin has received a special order from a foreign company for 3,000 units at $8.4 per unit. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. Required: a. Should Martin Company accept this special order? Show your analysis

Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392.000 Martin has received a special order from a foreign company for 3,000 units at $8.4 per unit. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. Required: a. Should Martin Company accept this special order? Show your analysis

Name: Martin Company incurred the following costs for 70,000 units:Variable
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Description: Martin Company incurred the following costs for 70,000 units:Variable costs $420,000Fixed costs 392.000Martin has received a special order from a foreign company for 3,000 units at $8.4 per unit. There issufficient capacity to fill the order without

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EA: Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special...

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Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?
Sheffield Corp. incurred the following costs for 82000 units: Variable costs Fixed costs O $15.58 O $8.70 O $8.88 O $10.80 $549400 Sheffield has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4200 for shipping. If Sheffield wants to earn $4000 on the order, what should the unit price be? Save for Later 392000 Attempts: 0 of 1 used Submit Answer
Concord Corporation incurred the following costs for 66000 units: Variable costs $396000 Fixed costs 392000 Concord has received a special order from a foreign company for 3500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4900 for shipping.If Concord wants to break even on the order, what should the unit sales price be? $11.94 $7.40 $6.00 $13.34
Sheridan Company incurred the following costs for 54000 units: Variable costs $324000 Fixed costs 392000 Sheridan has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2800 for shipping.If Sheridan wants to earn $4000 on the order, what should the unit price be? $9.40 $10.66 $8.00 $16.66
Martin Company incurred the following costs for 70,000 units:Variable costs $420,000Fixed costs $392,000Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Martin wants to earn $6,000 on the order, what should the unit price be? Group of answer choices $9.70 $15.70 $8.00 $10.10
Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs $392,000 Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Martin wants to earn $6,000 on the order, what should the unit price be? Group of answer choices $9.70 $15.70 $8.00 $10.10
XYZ Company incurs costs of $ 30 per unit ($18 variable and $12 fixed) to make a product that normally sells for $42. A foreign wholesaler offers to buy 6,000 units at $26 each. The special order results in additional shipping costs of $1 per unit. Calculate the increase or decrease in net income the company realizes by accepting the special order, assuming they have excess operating capacity. Should the Company accept the special order? Select one: a. XYZ should reject the special offer to avoid 42,000 loss. b. XYZ should accept the offer to gain 24,000 net income. c. XYZ should accept the offer to gain 42,000 net income. d. XYZ should reject the special offer to avoid 24,000 loss.
Marigold Corp. incurred the following costs for 52000 units: Variable costs $312000 Fixed costs 392000 Marigold has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2400 for shipping. If Marigold wants to earn $4000 on the order, what should the unit price be? O $8.00 O $10.74 O $9.20 O $16.74
Required:(a) GEM has an opportunity to sell 10 000 units to an overseas customer. Import duties and other special costs associated with this order would total $42 000. The only selling costs that would be associated with the order would be a shipping cost of $9.00 per unit. What would be the minimum acceptable unit price for GEM to consider this order? (hint: GEM would not accept the order if it would reduce the company’s profit) (b) The company has 200 units of Flicks on hand that were produced two months ago. Due to blemishes on the units, it will be impossible to sell these units at the normal price. If the company wishes to sell them through regular sales channels, what would be the relevant cost for setting the minimum price? Explain. (c) “All future costs are relevant in decision making.” Do you agree? Explain.
Swifty Corporation’s unit manufacturing cost is: Variable Costs $50 Fixed Costs 25 A special order for 2000 units has been received from a foreign company. The unit price requested is $54. The normal unit price is $92. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be $34000. $(42000). $(46000). $4000.
At ABC Company, it costs $30 per unit ($20 variable and $10 fixed) to make a product at full capacity that normally sells for $45 per Units. A foreign wholesaler offers to buy 3,000 units at $25 each. ABC will incur special shipping costs of $2 per unit. Assuming that the company has excess operating capacity, Indicate the net income (loss) for the company would realize by accepting the special order. Reject Ассept Net Income Increase/ Decrease Revenues Costs Net Income ords E English (United States)
Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 30,000 units of product at $19 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $23 Unit manufacturing costs: Variable 10 Fixed 5 What is the amount of income or loss from the acceptance of the offer? Oa. $300,000 loss Ob. $690,000 loss Oc. $570,000 income Od. $270,000 income Previous Next 7:36 PM CP 12/13/2020