Pharoah Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is: Materials $9,000 Labor 27,000 Variable overhead 18,000 Fixed overhead 36,000 Total $90,000 Pharoah also incurs 5% sales commission (S0.30) on each disc sold. Rudd Corporation offers Pharoah $4.30 per disc for 2,700 discs. Rudd would sell the discs under its own brand name in foreign markets not served by Pharoah. If Pharoah accepts the offer, its fixed overhead will increase from $36,000 to $38,700 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sig
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- Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?Gruden Company produces golf discs which it normally sells to retailers for $7 each. Gruden also incurs 5% sales commission ($0.35) on each disc sold. The cost of manufacturing 20,000 golf discs is: Materials $10,000 Labor 30,000 Variable overhead 20,000 Fixed overhead 40,000 Total $100,000 McGee Corporation offers Gruden $4.80 per disc for 5,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, it will incur a one-time fixed cost of $6,000 due to the rental of an imprinting machine. No sales commission will result from the special order. a. Prepare an incremental analysis for the special order. b. Should Gruden accept the special order? Why or why not? c. What assumptions underlie the decision made in part (b)?Gadson Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,000 golf discs is: Materials $ 10,000 Labor 30,000 Variable overhead 20,000 Fixed overhead 40,000 Total $100,000 Gadson also incurs 5% sales commission ($0.35) on each disc sold.Johnson Corporation offers Gadson $4.80 per disc for 5,000 discs. Johnson would sell the discs under its own brand name in foreign markets not yet served by Gadson. If Gadson accepts the offer, its fixed overhead will increase from $40,000 to $46,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Prepare an incremental analysis for the special order. RejectOrder AcceptOrder Net IncomeIncrease(Decrease) Revenues $ $ $ Materials Labor Variable overhead Fixed overhead…
- Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,000 golf discs is: Materials $ 6,750 Labor 21,000 Variable overhead 14,250 Fixed overhead 29,250 Total $71,250 Crane also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Gruden $4.80 per disc for 4,500 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Crane. If Crane accepts the offer, its fixed overhead will increase from $29,250 to $33,750 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,100 golf discs is: Materials Labor Variable overhead Fixed overhead Total Crane also incurs 6% sales commission ($0.42) on each disc sold. McGee Corporation offers Crane $5.00 per disc for 4,600 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Crane. If Crane accepts the offer, it will incur a one-time fixed cost of $4,840 due to the rental of an imprinting machine. No sales commission will result from the special order. Assume there is sufficient capacity to accommodate the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Materials Labor Variable overhead Cost of equipment rental Net income $ 7,852 21,744 14,496 30,502 $74,594 (b) Crane should 69 $ $ Should Crane accept the special…Farmer Co. manufactures and sells widgets to the students at Texas A&M University. The widgets have a selling price of $10 per widget. It costs Farmer Co. $6.00 in variable costs to manufacture each widget. Altogether the company incurs $100,000 in fixed costs. This year the company had sales of $275,000. How many additional units did Farmer Co. sell above its breakeven point?(A) 25,000(B) 1,500 (C) 2,500(D) 3,000
- Tamarisk Company produces golf discs, which it normally sells to retailers for $8 each. The cost of manufacturing 20,400 golf discs is: Materials Labour Variable overhead Fixed overhead Total $11,424 29,988 19,380 Tamarisk also incurs 10% sales commission ($0.80) on each disc sold. Oak Corporation offers Tamarisk $4.80 per disc for 5,100 discs. Oak would sell the discs under its own brand name in foreign markets not yet served by Tamarisk. If Tamarisk accepts the offer, it will incur a one-time fixed cost of $5,400 due to the rental of an imprinting machine. No sales commission will result from the special order. Less 39,500 Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,275.) $100,292 Incremental contribution margin $ Fixed cost Incremental income V Incremental cost: $Casio Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,000 golf discs is: Materials $ 10,000 Labor 30,000 Variable overhead 20,000 Fixed overhead 40,000 Total $100,000 Casio also incurs 5% sales commission ($0.35) on each disc sold.McGee Corporation offers Casio $4.8 per disc for 5,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Casio. If Casio accepts the offer, its fixed overhead will increase from $40,000 to $46,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order.A) Prepare an incremental analysis for the special order B) Should Casio accept the special order? Why or why not?Maple Inc. manufactures a product that costs $25 per unit plus $43,000 in fixed costs each month. Maple currently sells 6,000 of these units per month for $47 each. If Maple leased a machine for $12,000 a month, it could add features to the product that would allow it to sell for $53 each. It would cost an additional $9 per unit to add these features. How much would Maple's profit be affected if it leased the machine and added features to its product? Multiple Choice Increase $252,000 Decrease $252,000 Increase $6,000 Decrease $30,000
- Goodstone Tire Corporation sells tires for $100 each. Per unit costs associated with producing and selling the tires are: Direct materials $35 Direct labor 10 Factory overhead 20 Selling and administrative 15 The variable portion of the factory overhead is $8 per unit. A foreign company wants to purchase 10,000 tires for $70 each. The order would not require any selling or administrative costs. The purchaser will pay the shipping costs, but Goodstone will have to pay a $100,000 inspection fee in order to be able to make the foreign sale. Accepting the special order will not affect current sales or production. What effect would accepting the special order have on Goodstone's net operating income?Old man Joe sells playlist online. current year a sales volume is 500,000 playlists. Old man Joe has been selling the lists $10 each.The variable costs consist of the $5 unit (playlist) purchase price of themusic rights. Old man Joe's annual fixed cost are 200,000 (assume that 50% of the fixed cost are direct product costs and the remaining 50% are selling and administrative) and his company is subject to a 40 % income tax rate. Based on the original problem information, calculate the margin of safety and operating leverage. Explain what they mean.Old man Joe sells playlist online. current year a sales volume is 500,000 playlists. Old man Joe has been selling the lists $10 each.The variable costs consist of the $5 unit (playlist) purchase price of themusic rights. Old man Joe's annual fixed cost are 200,000 (assume that 50% of the fixed cost are direct product costs and the remaining 50% are selling and administrative) and his company is subject to a 40 % income tax rate. Create a cintribution margin statement for the current year. Include CM ratio and gross margin ratio. Calculate old man joe companys break even point for the current year in the number of playlists and in total dollars. Management expects the sale volume will increase by 10% for the new year and the price old man joe pays for the music rightd to increase 40 % next year. if the unit selling price will increase by 5% calculate the new contribution margin statement. would there be any tax? why or why not? Based on the original problem information calculate the…