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 Less V 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. Fixed cost 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 0 decimal places, e.g. 5,275.) $100,292 Incremental contribution margin $ Incremental income Incremental cost: $

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 Less V 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. Fixed cost 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 0 decimal places, e.g. 5,275.) $100,292 Incremental contribution margin $ Incremental income Incremental cost: $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a...

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