pter 10 Homework11tseBookHintAskPrintReferencesMcGrawHill-==escPardo Company produces a single product and has capacity to produce 140,000 units per month. Costs to produce its current monthlysales of 112,000 units follow. The normal selling price of the product is $148 per unit. A new customer offers to purchase 28,000 unitsfor $65.70 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixed general andadministrative costs. The special offer would not affect its normal sales.1option!Direct materialsDirect laborVariable overheadFixed overheadFixed general and administrativeTotals(a) Compute the income from the special offer.(b) Should the company accept the special offer?rRequired AAVariable costsGComplete this question by entering your answers in the tabs below.ZF1Compute the income for the special offer. (Round your "Per Unit" answers to 2 decimal places.)SPECIAL OFFER ANALYSISPer Unit@Required B2WS0²F2*#command3E20F3DPer Unit.$ 12.5015.00MAR29X C14.0017.5014.00$ 73.004OaF4RF%Costs at 112,000Units$ 1,400,0001,680,0001,568,00051,960,0001,568,000$ 8,176,000< PrevV9SavedF5Tm6GTotal11 of 11stv ♫ © NiZAⓇsFOYB&7HadNext >F7UN8DIIFB(D9F9KMF100LXdPHelpF11O:command

For special order, only variable costs are to be incurred to fulfill the order. The fixed costs are…

Answered: ces Pardo Company produces a single…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 17PROB

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Q – 10: Sohar Company manufactures 10,000 units of a spare part ALFA each year for use on its production line. At this level of activity, the cost per unit for part ALFA is as follows: Direct materials $ 2.40 Direct labor 3.50 Variable manufacturing overhead 1.60 Fixed manufacturing overhead 5.00 Total cost per part $12.50 An outside supplier has offered to sell 15,000 units of spare part ALFA each year to Sohar Company for $11.75 per part. If Sohar Company accepts this offer, the facilities now being used to manufacture ALFA could be rented to another company at an annual rental of $75,000. However, Sohar Company has determined that $3 of the fixed manufacturing overhead being applied to part ALFA would continue even if part ALFA were purchased from the outside supplier. Required: a) Prepare computations showing how much profits will increase or decrease if the outside supplier’s offer is accepted. b) Also mention which cost is opportunity cost…
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Ch. 8 Homework Question 8 (a) Please solve and show the following Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour. Additional information: Selling costs are expected to be 6 percent of sales.Fixed administrative expenses per month total $1,200.Required: Complete Shadee's budgeted income statement for the months of May and June
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Ch. 8 Homework 2 Please solve and explain the following problem Croy Inc. has the following projected sales for the next five months: MonthSales in UnitsApril 3,850May 3,875June 4,260July 4,135August 3,590 Croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. Direct material costs $3.10 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Raw materials on hand at March 31 totaled 3,865 pounds. 1) Determine budgeted production for April, May, and June. 2) Determine the budgeted cost of materials purchased for April, May, and June
H6. 18. Question Content Area Aquamarine Company sells one of its products, Product X, for $50 each. Sales volume averages 5,000 units per year. Recently, its main competitor reduced the price of its product to $30. Aquamarine expects sales to drop dramatically unless it matches the price offered by its competitor. In addition, the current profit per unit must be maintained. Information about Product X (for production of 5,000 units) follows: Standard QuantityActual QuantityActual CostMaterials (pounds)8,50010,00025,000Labor (hours)2,0002,50012,000Setups (hours)02,0004,000Material handling (moves)01,0002,500Warranties (number repaired)05008,000 The non-value-added cost per unit is (Round answer to two decimal places.): a. $3.17. b. $4.50. c. $4.13. d. $3.80. 24. Question Content Area Phillips Screw Company produces screw fittings. It is determined that T = 1 inch in diameter. Specification limits allow a variation of plus or minus 0.5 inches. Products produced at…

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