It costs Sheridan Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1700 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Sheridan has sufficient unused capacity to produce the 1700 scales. If the special order is accepted, what will be the effect on net income? $5100 decrease $3400 decrease $3400 increase $25500 increase

Q: Franklin Company, which produces and sells a small digital clock, bases its pricing strategy on a 35…

A: Contribution margin is computed by subtracting the variable cost of production from the sales price.

Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit,…

A: Target sales = (Fixed Cost-Desired Income)/contribution per unit

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: It costs a company 14 of variable and 6 of fixed cost to produce a product Z200 that sells for 35. A…

A: Fixed cost is not considered whenever there is unused capacity.

Q: At ABC Company, it costs $30 per unit ($20 variable and $10 fixed) to make a product at full…

A: Sales on special order = No. of units  x sales price per unit = 3000 units  x $25 per unit = $75,000

Q: It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production…

A: Relevant cost refers to those cost which is relevant for choosing the best alternative whereas…

Q: Cobe Company nas manufactured 200 partially finished cabinets at a cost of $50,000, These can be…

A: Lets understand the basics. When there is option to choose between sell it as it is or process…

Q: Hiawatha, Inc. has an agreement with a customer to produce 10 units of a product to sell for $1,200…

A: Variable costs per unit = total costs per unit x 50% = $850 x 50% = $425 Fixed costs per unit =…

Q: company sells its product at P30 per unit. Unit variable cost is P22 and total fixed costs total to…

A: At indifferent point profit to the company will be same in both proposals.

Q: Maize Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that…

A: Relevant cost per unit = Variable cost per unit + Additional costs per unit to imprint a logo = $20…

Q: It costs Ghala Company OMR 13 of variable and OMR 6 of fixed costs to produce one unit which…

A: The answer is option (e.) [i.e OMR 3,000 Increase] Refer step 2 for explanation

Q: Costa Company has a capacity of 40,000 units per year and is currently selling 35,000 for $400 each.…

A: Special order are acceptable to the extent if they bring incremental profits in the company. The…

Q: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling…

A:

Q: It costs HHI Company $7 of variable costs and $3 of fxed costs to produce its product at full…

A: Variable cost per unit for the offered 3,000 units = $7 + $2.50 = $9.50 . Even when company is not…

Q: Mitchell Company manufactures a product with a unit variable cost of $50 and a unit sales price of…

A: As accepting the special order will not affect the fixed cost and the present sales (given), so the…

Q: The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of…

A:

Q: The Can Division of Marigold Corp. manufactures and sells tin cans externally for $0.60 per can. Its…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: It costs Ghala Company OMR 13 of variable and OMR 6 of fixed costs to produce one unit which…

A: Net income is the income which is computed by diminution of operating cost from the gross profits.

Q: Luca Inc. has received a special order for 2,000 units of its product at a special price of $75. The…

A: Management accounting is widely used by managers to determine the differential costs of the product…

Q: Bluebird Mfg has received a special one time order for 15000 bird feeders at $3.20 per unit.…

A: In the given case, the company is operating at a level of 80% and is able to produce and sell 75,000…

Q: Stryker Industries received an offer from an exporter for 23,000 units of product at $16 per unit.…

A: Income = Sales  - Relevant cost   Fixed manufacturing cost is the sunk cost hence not considered

Q: Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.40 per unit.…

A: Net income is the income left to an entity after subtracting all the expenses from the revenue…

Q: If the order is accepted, variable marketing costs on the special order would be reduced by 25…

A: Net gain or loss is what remains after certain deductions are made from gross profit or loss.

Q: Buchanan Company currently sells 4,000 units of product Q for $1 each. Capacity is 5,000 units.…

A: Increase (decrease) in income on acceptance of order = Net income if order is accepted - Net income…

Q: XYZ Company incurs costs of $ 30 per unit ($18 variable and $12 fixed) to make a product that…

A: Net income is the amount earned by an entity after deducting all the outlays from the revenues.

Q: Almond has received a special order for 11,000 units of its product at a special price of $60. The…

A:

Q: Bluebird Manufacturing hes received a special one-time order for 15,900 bird feedersfat $3.90 per…

A: The income statement represents the net income or net loss that is calculated by deducting the…

Q: (a) GEM has an opportunity to sell 10 000 units to an overseas customer. Import duties and other…

A: Cost may be defined as the amount of funds incurred for the production of goods from raw material…

Q: It costs Ghala Company OMR 13 of variable and OMR 6 of fixed costs to produce one unit which…

A: A firm needs to take special order decision when a product can be sold in a large quantity to a…

Q: Sunshine's Surfboards usually sells the Beach Sunnies for $100. The variable production cost is $50,…

A: Corporations must constantly make short-term decisions such as whether or not to approve special…

Q: FRANCORP sells product ABC for $60. The variable production cost is $12, the fixed production cost…

A: Minimum price per unit = Total cost / total units

Q: The pipes and plastic company manufactures wiring tools. The company  is currently producing well…

A:

Q: It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production…

A: The question is multiple choice question. Required  Choose the Correct Option

Q: incremental income or loss

A: Sales (8,000 units @$14) $112,000 Less Existing variable costs (8,000 units @$12) ($96,000) Less…

Q: Markson had the following results of operations for the past year (shown in picture). A foreign…

A: A special order is a one-time business opportunity that requires a large quantity at a low price. To…

Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit,…

A: Units need to sell for desired profit = (Fixed costs + Desired profit) / Contribution margin per…

Q: Diskmar has received a special order for 2,000 units of its product at a special price of $75. The…

A: Formulas:

Q: Suppose that Division T can sell only 10,000 timers to outside customers. What is the lowest…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: It costs Vaughn Manufacturing $12 of variable and $5 of fixed costs to produce one bathroom scale…

A: Net Income = Sales - Variable cost = Contribution - Fixed Cost - any special Cost incurred (i.e.…

Q: If the special order is accepted, what will be the effect on net income?

A: Computation of effect of net operating income if the special order is accepted is shown below :

Q: Shelby Industries has a capacity to produce 45,00045,000 oak shelves per year and is currently…

A: Given Information : Capacity to produce = 45,000 shelves Currently selling  = 40,000 shelves Unit…

Q: A company sells its product at P30 per unit.Unit variable cost is P22 and total fixed costs total to…

A: SOLUTION- NEW VARIABLE COST PER UNIT AFTER SALES COMMISSION = P22+(30*5%) =P23.50 PER UNIT . NEW…

Q: It costs Crane Company $12 of variable and $5 of fixed costs to produce one bathroom scale which…

A: Since the fixed cost would remain the same disregarding any change in the output till the optimal…

Q: Ross has received a special order for 16,000 units of its product at a special price of $23. The…

A: Formulas: Profit = Number of units * (Offer price - Variable cost)

Q: Bonita Company manufactures a product with a unit variable cost of $43 and a unit sales price of…

A: If the special order is covered under the present capacity of the business then it will not attract…