Maize Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 6,000 units at $30 each. Maize will incur additional costs of $4 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Maize will realize by accepting the special order, assuming Maize has suffi cient excess operating capacity. Should Maize Company accept the special order?

Q: Robinson Computers makes 5,700 units of a circuit board, CB76, at a cost of $230 each. Variable cost…

A:

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: Jacoby Company received an offer from an exporter for 23,600 units of product at $18 per unit. The…

A: Definition: Differential Analysis: Differential analysis refers to the analysis of differential…

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: cIntosh Enterprises produces giant stuffed bears. Each bear consists of $12 of variable costs, $9 of…

A: Incremental Income is the additional profit  when extra units of products are sold beyond the…

Q: Intercontinental’s special order also requires 1,000 kilograms of genatope, a solid chemical…

A: Managerial accounting:   Managerial accounting is more focused towards analyzing information and…

Q: Stryker Industries received an offer from an exporter for 28,000 units of product at $17 per unit.…

A: Income from acceptance of the offer per unit = $17 - $11 = $6 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: 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: 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: The company has received an offer from a Singaporean company to buy 6,000 bird houses at RM28.00 per…

A: Accept or reject is the decision making in cost and management accounting wherein the entity has to…

Q: total contribution margin

A: We know that as per Marginal Costing  Contribution Margin = Sales Revenue - Total Variable Cost  It…

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: Stryker Industries received an offer from an exporter for 27,000 units of product at $19 per unit.…

A: A special offer does not affect the normal production, So the fixed costs will not be deducted while…

Q: A company receives a special one-time order for 3,000 units of its product at $15 per unit. The…

A: Given: One time order = 3,000 Order for = $15 Unit selling price = $20 Production cost = $13.50…

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

A: Transfer pricing:   Transfer pricing refers to a process of pricing in which one sub-unit of an…

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: Bidbid Company manufactures a product with a unit variable cost of OMR 95 and a unit sales price of…

A: Relevant costing is defined as avoidable costs that are incurred while making a certain business…

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

A: Here in this question we are required to determine whether special order is accepted or not. When…

Q: A company receives a special order for 200 units that requires stamping the buyer’s name on each…

A: Given information is: A company receives a special order for 200 units that requires stamping the…

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: Walton Corporation is currently selling 104 units of its product. The company is deciding the price…

A: Lets understand the basics. When any special order sales is made which does not affect the current…

Q: Raven Corporation received an offer from an exporter for 28,000 units of product at $17 per unit.…

A: Differential cost represents the cost that arose between two alternatives. Basically, the cost is…

Q: Country Jeans Co. has an annual plant capacity of 65,600 units, and current production is 46,300…

A: Revenue = No. of units  x Selling price = 16,100 units x $26 each = $418,600 Variable manufacturing…

Q: normally sells for $34. If accepted, Goodman will have to pay an additional shipping charge of…

A: Variable Manufacturing cost for each unit is a relevant cost as it is the cost to be incurred on…

Q: Cranberry has received a special order for 170 units of its product at a special price of $2,350.…

A: The variable cost are effected with changes in number of units produced.  The fixed cost remains…

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: Gadson Company produces golf discs which it normally sells to retailers for $7 each. The cost of…

A: a. Prepare an incremental analysis for the special order.

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: 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: Lopez Corporation sells a product for $18 per unit, and the standard cost card for the product shows…

A: While making the decision for the special orders, we need to find out the relevant cost for the…

Q: Metalex Roofing Ltd manufactures roofing sheets whose normal selling price is GH¢20 per sheet. The…

A: A manager should make a decision whether to accept a product or not based on the comparison made…

Q: Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per…

A: Differential Revenue - It is the difference of the sales which will generated by the two different…

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: A sale manager of Nepa Co. Ltd has been approached by a overseas company to purchase 10,000 units of…

A: The determination of Cost and profit to decide the profitability of the special order is shown…

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: Alcatraz Division of XYZ Corp. sells 80,000 units of part X to the outside market. Part X sells for…

A: In the given question, Alcatraz division is selling 10,000 units to Capone division at $ 40 per…

Q: Waterways mass-produces a special connector unit that it normally sells for $3.60. It sells…

A: The question is based on the concept of Cost Accounting.

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: Seville Company manufactures a product with a unit variable cost of $42 and a unit sales price of…

A: Relevant income of the special order is calculated by reducing relevant expenses from the relevant…

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

A: Promotional expense refers to the cost, a corporation incurs for marketing its products or services…

Q: Bramble Company manufactures a product with a unit variable cost of $41 and a unit sales price of…

A: Note: In the special order question, firstly the relevant cost for the special order is calculated.…