Determine the differential income or loss per pair of boots from selling to the organization. $ Income Should Diamond Boot Factory accept or reject the special offer?
Q: A professional in designing sportswear and is considering expanding its sales by employing a…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
Q: Linger Industries accept this special order? Yes or No?
A: Sales revenue (420,000 cans @$1.10) $462,000 Less Cost to change the packaged machinery $10,000…
Q: es Company makes flanges for its main product of widgets. The cost of making each widget is as…
A: Solution: Relevant cost of making = Direct material + direct labor + variable overhead = 3.60 + 10…
Q: Robinson Computers makes 5,700 units of a circuit board, CB76, at a cost of $230 each. Variable cost…
A:
Q: In response to how the sales incentives might be contributing to falling profits despite growing…
A: Answer a:
Q: Johnson Company manufactures a variety of shoes and has received a special one-time-only order…
A: Working note: Calculate the contribution margin per unit.
Q: Dikit Corporation makes three different clothing fasteners. Data concerning the three products are…
A: Solution: Computation of Product wise and overall contribution margin ratio - Piedmont Fasteners…
Q: At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player…
A: SPECIAL ORDER ANALYSIS : PARTICULARS REJECT ORDER ACCEPT ORDER REVENUES (3,000 X $25) $0…
Q: O’Hara Associates sells golf clubs, and with each sale of a full set of clubs provides complementary…
A: Given information is: O’Hara Associates sells golf clubs, and with each sale of a full set of clubs…
Q: Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000 tablets a year.…
A:
Q: Harold, the owner of Sweet Tunes Music, purchased acoustic guitars for $90 each and has marked them…
A: a. Cost price = Purchase Price + Overhead expenses Purchase Price=$90 each Overhead expenses=9% of…
Q: Ahmad Inc. is a toy manufacturing firm and has the following information: Activity levels Total…
A: Cost-volume-profit analysis is made to assess the level of cost and profit at various levels of…
Q: Lambert, Inc. manufactures several types of accessories. For the year, the knit hats and scarves…
A: Solution: Particulars Keep knit Hat Eliminate Knit Hat Sales 400,000 0 Less: Variable Cost…
Q: Camille Company operates a chain of retail paint stores. Although the paint is sold under the…
A: Contribution margin per gallon =Selling price per gallon -Variable cost per gallon=P 100 -P 70=P…
Q: Athletics sells bicycles for $350 less 15% during the spring sale. city cycle sells their bicycles…
A:
Q: Jaws Inc. currently sells 40,000 dental tools to its regular customers but it has a capacity to…
A: The Income is generated when sales revenue is more than the costs incurred.
Q: Ledfords is a chain of home improvement stores. Suppose Ledfords is trying to decide whether to…
A: Requirement 1:
Q: Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 27,000 rolls annually…
A: Please find the answer to the above question below:
Q: . If Reuben accepts the offer, what will the effect on profit be?
A: Presently the total cost to make the rolls = 0.24 + 0.39 + 0.15 + 0.20 = $ 0.98 Potential seller is…
Q: Diamond Boot Factory normally sells its specialty boots for $24 a pair. An offer to buy 125 boots…
A: Given the following information: Diamond Boot Factory normally sells its specialty boots for $24 a…
Q: The company has been approached by an overseas distributor who wants to purchase 9,500 units on a…
A: Sales = Variable Cost + Fixed Cost + Profit
Q: Rugged Outfitters purchases one model of mountain bike at a wholesale cost of $520 per unit and…
A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…
Q: Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and…
A: Fixed Cost = P240,000 Add- Add shipment cost = (500*60) = P30,000
Q: Wow Inc, in business since 2008, makes swimwear for professional athletes. Analysis of the firms…
A: Total variable swimsuit expenses = Direct material + Direct labor +Variable overhead =P28…
Q: Shilling Manufacturing produces and sells oil filters for $3.25 each. A retailer has offered to…
A: The question is based on the concept of Financial Management.
Q: Jaws Inc. currently sells 40,000 dental tools to its regular customers but it has a capacity to…
A: The operating income is calculated as difference between sales revenue and expenses.
Q: Diamond Boot Factory normally sells their specialty boots for $27 a pair. An offer to buy 105 boots…
A: Income per pair on normal sales = Selling price - variable costs = $27 - $9 = $18 per paid
Q: A domestic shoe company distributes running shoes and tennis shoes for $90 per pair to it domestic…
A: >Maximum capacity is the amount of total units the production unit is capable of producing during…
Q: Tate Inc. and Booth Inc. are two small manufacturing companies that are considering leasing a…
A:
Q: Diamond Boot Factory normally sells its specialty boots for $32 a pair. An offer to buy 120 boots…
A: Following are the calculation of differential income or loss per pair of boots from selling to the…
Q: The Kidz Klothing store ordered a line of snowsuits at $60 each, less a trade discount of 8%. The…
A: Trade discount is given on the list price of the product. This discount is not recorded in the books…
Q: Rumba Dance Hall has offered to buy from Muy Bueno Bakery 100 of their chocolate cakes for $25 each.…
A: Differential income is refers to the difference in incomes compared in different alternatives.
Q: Tennis Products, Inc., produces three models of high-quality tennis rackets. The following table…
A:
Q: Sportsbags Inc. makes and sells hockey bags for students. Financial projections for this line of…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Diamond Boot Factory normally sells its specialty boots for $23 a pair. An offer to buy 105 boots…
A: Managerial accounting: Managerial accounting is the process of identifying, measuring, analyzing,…
Q: Diamond Boot Factory normally sells its specialty boots for $35 a pair. An offer to buy 125 boots…
A: Differential income is the profit earned by comparing with alternative methods.
Q: Flora's Flats produces comfortable and portable women's shoes designed to be worn as a second pair…
A:
Q: otiate the purchase price of its proposal in order to win the contract. What purchase price will…
A:
Q: The O'Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large…
A: Total cost of production is nothing but the sum of total variable cost and total fixed cost incurred…
Q: Saper estions. Yoga Pants Manufacturing incurs a total cost of $25 per unit, of which $20 is…
A: Only relevant costs should be considered for decision making. That is variable costs here Fixed…
Q: The cost price of 35 pairs of sport shoes was $350 per pair. AG Sport Center plan to sell all the…
A: Mark down is effectively devaluation of a product. That is, the seller reduces the actual list price…
Q: Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 33,000 rolls annually…
A: Pofit/loss on buying the rolls=Total cost of making-Total cost of buying
Q: The company produces and sells athletic shoes for children. The costs associated with each pair of…
A: Additional revenue =Additional sale output ×Sales price Given: Additional saale output =100…
Q: How much should Theta sell each rack so it can have a product profit margin of 28%?
A: In order to calculate the selling price for each rack, we need to calculate total cost of racks over…
Q: de Manulacturers Inc. is approached by a potential customer to fulfill a one - time - only special…
A: The minimum transfer price to be charged for special order is total variable cost. Since fixed cost…
Q: Reuben's Deli currently makes rolls for deli sandwiches it produces. It uses 31,000 rolls annually…
A: In make or buy decision making, that option should be adopted which is less costly.
Q: Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result, market…
A: Profit per Unit = Selling Price - Unit Cost
Q: SureLock Manufacturing Co. makes and sells several models of locks. The cost records for the ZForce…
A: Operating Income - It is the amount which shows the profit realized from the business operation of…
Q: Diamond Boot Factory normally sells its specialty boots for $375 a pair. An offer to buy 100 boots…
A: Differential Income is Additional Income earned from accepting the special order.
Q: A business that will open a gift shop in Los Angeles is considering making and selling love-themed…
A: Overstocking cost possibility Demand Box 0.1 10…
Diamond Boot Factory normally sells its specialty boots for $30 a pair. An offer to buy 100 boots for $22 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $12, and special stitching will add another $1 per pair to the cost.
Determine the differential income or loss per pair of boots from selling to the organization.
$ Income
Should Diamond Boot Factory accept or reject the special offer?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.)Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?Bienestar, Inc., has two plants that manufacture a line of wheelchairs. One is located in Kansas City, and the other in Tulsa. Each plant is set up as a profit center. During the past year, both plants sold their tilt wheelchair model for 1,620. Sales volume averages 20,000 units per year in each plant. Recently, the Kansas City plant reduced the price of the tilt model to 1,440. Discussion with the Kansas City manager revealed that the price reduction was possible because the plant had reduced its manufacturing and selling costs by reducing what was called non-value-added costs. The Kansas City manufacturing and selling costs for the tilt model were 1,260 per unit. The Kansas City manager offered to loan the Tulsa plant his cost accounting manager to help it achieve similar results. The Tulsa plant manager readily agreed, knowing that his plant must keep pacenot only with the Kansas City plant but also with competitors. A local competitor had also reduced its price on a similar model, and Tulsas marketing manager had indicated that the price must be matched or sales would drop dramatically. In fact, the marketing manager suggested that if the price were dropped to 1,404 by the end of the year, the plant could expand its share of the market by 20 percent. The plant manager agreed but insisted that the current profit per unit must be maintained. He also wants to know if the plant can at least match the 1,260 per-unit cost of the Kansas City plant and if the plant can achieve the cost reduction using the approach of the Kansas City plant. The plant controller and the Kansas City cost accounting manager have assembled the following data for the most recent year. The actual cost of inputs, their value-added (ideal) quantity levels, and the actual quantity levels are provided (for production of 20,000 units). Assume there is no difference between actual prices of activity units and standard prices. Required: 1. Calculate the target cost for expanding the Tulsa plants market share by 20 percent, assuming that the per-unit profitability is maintained as requested by the plant manager. 2. Calculate the non-value-added cost per unit. Assuming that non-value-added costs can be reduced to zero, can the Tulsa plant match the Kansas City per-unit cost? Can the target cost for expanding market share be achieved? What actions would you take if you were the plant manager? 3. Describe the role that benchmarking played in the effort of the Tulsa plant to protect and improve its competitive position.
- Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the production of the boxed lunches. The costs to make the cookies are: A potential supplier has offered to sell Country Diner the cookies for $0.85 each. If the cookies are purchased, 10% of the fixed overhead could be avoided. If Jason accepts the offer, what will the effect on profit be?Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the 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.)Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the tour bus 4,000 miles and paid a total of $1,250 in March. In April, they paid $970 for 3.000 miles. What is the variable cost per mile if Able Transport uses the high-low method to analyze costs?Variety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
- Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has approached Oat Treats with a proposal to sell the company its top selling oat cereal bar at a price of $27,500 for 20,000 bars. The costs shown are associated with production of 20,000 oat bars currently. The manufacturing overhead consists of $3,000 of variable costs with the balance being allocated to fixed costs. Should Oat Treats make or buy the oat bars?Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves dont require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order?