Novak Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $12, and ove $16 (75 % variable). Novak has no excess capacity to accept a special order for 38,200 units, at a discount of 25% from the regul price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Novak would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).)

Novak Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $12, and ove $16 (75 % variable). Novak has no excess capacity to accept a special order for 38,200 units, at a discount of 25% from the regul price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Novak would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

See similar textbooks

Similar questions

Your answer is partially correct. Whispering Winds Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $16, direct labour $10, and overhead $16 (75% variable). Whispering Winds has no excess capacity to accept a special order for 37,300 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Whispering Winds would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ Whispering Winds Co. should not accept the special order.
Vaughn Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $16 (75% variable). Vaughn has no excess capacity to accept a special order for 36,400 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Vaughn would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) Vaughn Co. should not accept the special order. (327,600)
Your answer is partially correct. Blue Spruce Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct materials $16, direct labour $10, and overhead $16 (75% variable). Blue Spruce has no excess capacity to accept a special order for 37,300 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Blue Spruce would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ (111900) Blue Spruce Co. should not accept the special order.
Use the information below to answer the following question(s). Franscioso Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $5.25 Direct manufacturing labour $1.15 Manufacturing overhead $0.25 Selling costs $1.85 Annual fixed costs $110,000 The Franscioso Company contribution margin ratio is O A. 0.702:1. O B. 1.425:1. O C. 0.298:1. O D. 1.102:1. O E. 0.637:1.
Sheridan Inc. sells a product for $106 per unit. The variable cost is $64 per unit, while fixed costs are $414,540. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $111 per unit. a. Break-even point in sales units b. Break-even point if the selling price were increased to $111 per unit
Radison Enterprises sells a product for $92 per unit. The Costs that vary in total dollar amount as the level of activity changes.variable cost is $59 per unit, while Costs that tend to remain the same in amount, regardless of variations in the level of activity.fixed costs are $223,245. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $100 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $100 per unit units
Northpoint Company sells several products. Information of average revenue and costs are as follows: (Final answer must be DOUBLE RULE) $30.00 Selling price per unit Variable costs per unit: Direct materials $6.00 Direct manufacturing labor $2.60 Manufacturing overhead $3.40 Selling costs $5.00 y Annual fixed costs $126,000 Tax Rate 35% 1. Compute for the breakeven point in Units and Pesos. 2. How much is the selling price per product to earn an after tax income of $93,000 assuming that the company sold 45,000 units? (round it to whole number) 3. Calculate the Sales required to earn a gross income of $110,000. 4. Assuming the Tax rate is 40% and the fixed cost is increased by 25%, if the company wants to earn after tax income of $150,000, how many units must be sold?
Lablanc Inc. sells a product for $116 per unit. The variable cost is $60 per unit, while fixed costs are $1,185,408. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $123 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $123 per unit fill in the blank 2 units
Jamison Company produces and sells Product X at a total cost of $1,300 per unit, of which $880 is product cost and $420 is selling and administrative expenses. In addition, the total cost of $1,300 is made up of $740 variable cost and $560 fixed cost. The desired profit is $169 per unit. Determine the markup percentage on total cost.fill in the blank 1 %
Northenscold Company sells several products. Information of average revenue and costs are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $2.00 ABC cost per unit $0.50 Fixed MOH $0.40 Variable MOH $0.30 Selling costs $2.00 Annual fixed costs $96,000 Calculate the number of units Northenscold's must sell to yield a profit of $144,000. (round to nearest whole unit).
Sheridan Inc. sells a product for $106 per unit. The variable cost is $64 per unit, while fixed costs are $414,540. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $111 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $111 per unit fill in the blank 2 units
Radison Inc. sells a product for $91 per unit. The variable cost is $51 per unit, while fixed costs are $230,400. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $99 per unit. a. Break-even point in sales unitsfill in the blank 1 unitsb. Break-even point if the selling price were increased to $99 per unitfill in the blank 2 units