"CI UTIW C 3,200,0 per yeui. The Walls Candy Company receives an offer to produce 5,000 cases of candy for special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum selling price The Walls Candy Company should accept for the order? Explain why. a E21-21 Analyzing profitability ppld Spears Company sells two products, Alpha and Omega, with a sales mix of 40% and 60%, respectively. Alpha has a contribution margin per unit of $10, and Omega has a contribution margin per unit of $15. The company sold 500 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company Note: Exercise E21-21 must be completed before attempting Exercise E21-22. E21-22 Analyzing profitability Refer to Exercise E21-21. Assume the sales mix shifted to 50% for each product. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company.

"CI UTIW C 3,200,0 per yeui. The Walls Candy Company receives an offer to produce 5,000 cases of candy for special event. This is a one-time opportunity during a period when the company has excess capacity. What is the minimum selling price The Walls Candy Company should accept for the order? Explain why. a E21-21 Analyzing profitability ppld Spears Company sells two products, Alpha and Omega, with a sales mix of 40% and 60%, respectively. Alpha has a contribution margin per unit of $10, and Omega has a contribution margin per unit of $15. The company sold 500 total units in September. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company Note: Exercise E21-21 must be completed before attempting Exercise E21-22. E21-22 Analyzing profitability Refer to Exercise E21-21. Assume the sales mix shifted to 50% for each product. Calculate the total amount each product contributed to the coverage of fixed costs and the total contribution margin for the company.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6MC: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling...

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Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)
Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.
Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in the prior year was: At the start of the current year, Cinnamon Depot received a special order for 18,000 rolls to be sold for $1.50 per roll. The company estimates it will incur an additional $1,000 in total fixed costs in order to lease a special machine that forms the rolls in the shape of a heart per the customers request. This order will not affect any of its other operations. Should the company accept the special order? (Show your work.)
SCM Company currently sells a camera for P12,000. An aggressive competitor has announced plans for a similar product that will be sold for P10,250. SCM's marketing department believes that if the price is dropped to meet competition, unit sales will increase by 10%. The current cost to manufacture and distribute the camera is P8,750, and SCM has a profit goal of 20% of sales. If SCM meets competitive selling prices, what is the company's target cost? P2,400. P8,200. P8,750. P9,600. None of the above
nick limited sells creme, a cream suitable for variety of first aid uses. The company commenced operations earlier this year and expects to sell 100,000 tubes of Super crème. The following Information is available: Selling price per tube 7.00Direct material cost per tube 2.10 Direct labour cost per tube 1.35Variable overhead cost per tube 0.75Total fixed costs for the year. 210,000RequiredWhat is the Break-even point (BEP) in tubes and sales revenue? 4) If the company wanted to earn a profit of UGX 46,200 for the year how many tubes of Super crème must be sold? By what percentage should expected sales revenue fall before NICK Limited starts to make a loss? State the assumptions and limitations of break-even analysis
This year, Lambert Company will ship 1,500,000 pounds of goods to customers at a cost of $1,200,000. If a customer orders 10,000 pounds and produces $200,000 of revenue( total revenue is $20million), The amount of shipping cost assigned to the customer by using ABC would be a. Unable to be determined. b.$8,000($0.80per pound shipped) c.$24, 000(2% of the shipping cost) d. $12,000(1% of the shipping cost) e. None of these
Bluebird Mfg has received a special one time order for 15000 bird feeders at $3.20 per unit. Bluebird currently produces and sells 75000 units at $7.20 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect bluebird sales accepts this additional business, the effect on net income will be?
PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS Comercial El Alacrán, S.A., purchases 200,000 units per year of the only product it sells. The cost of each order is $35.00. The annual unit maintenance cost is 23% of its cost of $8.00. The supplier currently takes 5.5 days to deliver, and the company sorts and stores it in 3 days. The company makes significant efforts to shorten these lead times. If it manages to reduce, through an agreement with the supplier, its delivery time to 3.5 days and to do the sorting in 1.5 days, how many units does the decrease in the reorder point amount to? READ WELL, AND ANSWER CAREFULLY, PLEASE, bartleby expert :)
Assume that Cane expects to produce and sell 90,000 Betas during the current year. One of Cane’ssales representatives has found a new customer who is willing to buy 5,000 additional Betas for a priceof $39 per unit. What is the financial advantage (disadvantage) of accepting the new customer’s order?
integrity inc. sells computor training packages to its business customers at a price of $91 the cost of production (in present value term) is $87, integrity sells its packages om term of net 30 and estimated that about 8% of all orders will be uncollectible an oder in for 25 units the interest rate is 0.6% per month given the above information Present value of revenue is? The expected profit from a sale is? If this is a one time Order and the sale will be made unless credit is expected the firm (should not) extend credit the break even probability of collection is ?% No suppose that if a customer pays the months bill it will place an identical order in each month indefinitely and can be safely assume to pose no risk of default in this case since the present value of the perpetuity of profit is? And the present value of sale is ? The credit should be extended the break even point probability of collection in the repeat- sales is
Almond has received a special order for 11,000 units of its product at a special price of $60. The product normally sells for $69 and has the following manufacturing costs: Per unit Direct materials $ 21 Direct labor 16 Variable manufacturing overhead 19 Fixed manufacturing overhead 4 Unit cost $ 60 Assume that Almond has sufficient capacity to fill the order. If Almond accepts the order, what effect will the order have on the company’s short-term profit? Multiple Choice $143,000 decrease $99,000 increase Zero $44,000 increase