Sheffield Corp. incurred the following costs for 82000 units:Variable costsFixed costsO $15.58O $8.70O $8.88O $10.80$549400Sheffield has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order withoutjeopardizing 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 Later392000Attempts: 0 of 1 usedSubmit Answer

Decision making is a fundamental process that we encounter daily, both in our personal lives and…

Answered: Sheffield Corp. incurred the following…

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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Concord Music produces 59600 blank CDs on which to record music. The CDs have the following costs: Direct Materials $10000 Direct Labour 15700 Variable Overhead 3300 Fixed Overhead 6600 None of Concord’s fixed overhead costs can be reduced, but another product could be made that would increase the operating income by $4500 if the CDs were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the CDs, what is the maximum external price that Concord would be willing to accept to acquire the 59600 units externally? $31100 $40100 $35600 $33500
Stryker Industries received an offer from an exporter for 27,000 units of product at $19 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available: Domestic unit sales price $25 Unit manufacturing costs: Variable 9 Fixed 6 What is the amount of income or loss from acceptance of the offer? a.$675,000 b.$513,000 c.$243,000 d.$270,000
Stryker Industries received an offer from an exporter for 29,000 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 $25 Unit manufacturing costs: Variable Fixed 14 5 The differential cost from the acceptance of the offer is Oa. $145,000 Ob. $551,000 Oc. $725,000 Od. $406,000
Stryker Industries received an offer from an exporter for 22,000 units of product at $17 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 Unit manufacturing costs: Variable Fixed $23 12 3 The amount of profit or loss from acceptance of the offer is a Oa. $110,000 Ob. $264,000 Oc. $506,000 Od. $374,000
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Waltman Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 55,000 Direct labor 160,000 Variable overhead 75,000 Fixed overhead 175,000 If Waltman buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable. If the outside supplier offers a unit price of $68, net income will increase (decrease) by O ($50,000) decrease $125,000 increase O $85,000 increase O ($10,000) decrease
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ABX Inc. manufactures and sells compact disks. Price and cost data are as follows: Selling price per unit OMR 15 Variable cost per unit 7 Annual fixed costs 30,000 Required: 1. What is ABX's break-even point in units? 2. What is the companys break-even point in sales dollars? How many units would ABX have to sell in order to earn OMR 3. 25,000?
It costs Ghala Company OMR 13 of variable and OMR 6 of fixed costs to produce one unit which normally sells for OMR 35. Al Hadid Co. offers to purchase 3,000 units at OMR 15 each. Ghala Co. would incur shipping costs of OMR 1 per unit if the order were accepted. Ghala Co. has sufficient unused capacity to produce the 3,000 units. If the special order is accepted, what will be the effect on net income? Select one: a. OMR 6,000 increase O b. OMR 3,000 increase C. OMR 45,000 increase d. None of the answers are correct e. OMR 9,000 decrease
A buyer from another country offered to purchase 2,000 units of product for $ 2.50 per unit. The normal selling price is $ 3.00 per unit. The company's regular variable costs of $ 1.50 per unit would not change, however overall fixed costs would increase by $ 500 if his order is accepted. How much will net income increase if this special order is accepted? Multiple Choice $ 2,500. $ 2,000. $1,500. $ 3,000. $ 1,850.
H1.
It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production which normally sells for OMR 35. A foreign wholesaler offers to purchase 3,000 units at OMR 15 each. the company would incur special shipping costs of OMR 1 per unit if the order were accepted. Assuming that the company has the excess operating capacity to produce the 3,000 units. If the special order is accepted, what will be the effect on net income? Select one: Oa. None of the answers are correct Ob. OMR 6,000 increase O c. OMR 9,000 decrease O d. OMR 45,000 increase O e. OMR 6,000 decrease

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