SavedCanbery has received a special order for 120 units of its product at a special price of $1,800, The product normally sells for $2,300 and has the26folowing manufecturing costsPer unit$ 630Direct materials330Direct labor430Variable manufacturing overheadFized ranufacturing overhead530$1,920Onit costAssume that Cranbery has sufient capacity to fl the order without harmlng normal production and sales. If Crarnberry accepts the order, what efiectwil the order have on the company's short-term profit?Mutple Choice$14.400 increase$43.200 Increase( Prex26 of 38 Ne>

Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Saved Canbery has received a specál order for 120 units of its product at a special price of $1,800. The product normally sells for $2,300 and has the 26 folowing marufacturing costs Per unit $ 630 Direct materials 330 Direct labor Variable manufacturing overhead Fized nanufacturing overhead 430 530 Unit cost $1,920 Assume that Cranbery has suffcient capacity to fil the order without harming normal production and sales. H Cranberry accepts the ordler, what efiect wil the order have on the company's short-term profit? Mutple Choice O S1400 Increase $49.200 increase

Saved Canbery has received a specál order for 120 units of its product at a special price of $1,800. The product normally sells for $2,300 and has the 26 folowing marufacturing costs Per unit $ 630 Direct materials 330 Direct labor Variable manufacturing overhead Fized nanufacturing overhead 430 530 Unit cost $1,920 Assume that Cranbery has suffcient capacity to fil the order without harming normal production and sales. H Cranberry accepts the ordler, what efiect wil the order have on the company's short-term profit? Mutple Choice O S1400 Increase $49.200 increase

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000. The product normally sells for $2500 and has the following manuafacturing costs:Direct materials 690Direct Labor 390Variable manufacturing overhead 490Fixed manufaturing overhead 590Unit cost $2,160Assume that cranberry has sufficient capacity to fill the order withou harming normal production and sales. If cranberry accepts the order, what effect will the order have on the company's short term profit? 47,300 Increase17,600 Decrease17,600 Increase64,900 Decrease ?
Saved Mary has received a special order for 3300 units of tis product at a special price of $162. The product normally sells for $210 and has te bilowing marufacturing costs 29 Per unit $ 67 10 Diract muterials irect Inbor 25 Fazible mtacturing overbaad Tind naufacturing Orezhead it cart 12 $144 Assume that Mercy has suficient capacity to fl the order without harming normal production and sales and all fixed overhead is uravoidable LFlary accepts the order,what effect wilthe order have on the company's short-term profit? & What minimum price should Marcy charge to achieve a $115,500 incremental profit?
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A customer has requested that Lewelling Corporation fill a special order for 2,900 units of product S47 for $31 a unit. The normal selling price of the product is $30.40 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $19.00: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 5.30 4.00 2.40 7.30 $19.00 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $1.20 per unit and that would require an investment of $15,000.00 in special molds that would have no salvage value. Due to capacity constaints, this special order would result in a loss of regular sales of 725 units. The annual financial advantage (disadvantage) for the company as a result of accepting this special order…
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The Carlo Company has received a special order for 600 units of product B for P12 a unit. It usually sells for P19 a unit with a cost of P15 a unit inclusive of P1.5 a unit as sales commission that will not be paid on this order. The cost also includes P6 in manufacturing overhead, 2/3 of which is a common overhead allocation. Assuming the excess capacity is available and this order requires a mold that costs P150. What is the increase(decrease) in profit for this special order?