Robinson Computers makes 5,700 units of a circuit board, CB76, at a cost of $230 each. Variable cost per unit is $180 and fixed cost per unit is $50. Peach Electronics offers to supply 5,700 units of CB76 for $210. If Robinson buys from Peach, it will be able to save $20 per unit in fixed costs but continue to incur the remaining $30 per unit. Should Robinson accept Peach’s offer? Explain.

Q: Assume that HASF  furniture Inc., as described, currently purchases the chair cushions for its lawn…

A: Assume that HASF  furniture Inc., as described, currently purchases the chair cushions for its lawn…

Q: Plymouth Corp. sells units for $108 each. Variable costs are $41 per unit, and fixed costs are…

A: The level of production at which leasing and not leasing the new machine will be indifferent is…

Q: Crane Music produces 59000 blank CDs on which to record music. The CDs have the following costs:…

A: Overheads are the indirect costs of making or producing the product which can not be directly…

Q: Suko Na Ba Co. produces cellular phone cases. Each case requires a keypad which it also manufactures…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: company can buy the part from an outside supplier for​ $2 per unit and avoid​ 20% of the fixed…

A:

Q: NTJ Distributors Ltd has has an annual demand for an airport metal detector of 1400 units. The cost…

A: Lets understand the basics. Economic order quantity is a quantity at which carrying cost and…

Q: Somerset Computer Company has been purchasing carrying cases for its portable computers at a…

A: Solution a: A differential analysis is based on comparing the relevant cost of making the product…

Q: Shocking Electronics uses a standard part to make different types of radios. The total cost to make…

A: Working note: Fixed cost incurred if parts outsource Total fixed cost = $40000 $40000*80%=  $32000

Q: Huang Automotive is presently operating at 75% of capacity. The company recently received an offer…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Q: The Hershey Kayak Making Co. is considering whether or not to make a key part for one of its kayak…

A: Solution: Relevant cost of buying = Purchase cost + Cost of preparation of purchase contract

Q: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all…

A: Overtime pay = normal pay rate x 150% = $50 x 150% = $75

Q: XXX Company makes 4000 units at a cost of $300 each. Variable cost per unit is $200 and fixed cost…

A: Under make v/s buy decision,  A. Better to make if, manufacturing cost <purchase cost B. Better…

Q: Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and…

A: Operating Income = Sales - Purchase -Shipment cost - Fixed cost

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: Kristin is a distributor of brass picture frames. For 20X4, she plans to purchase for P30 each and…

A: a) Contribution per frame = Sell per frame - Purchase per frame Contribution per frame = P45 -P30…

Q: Maple Inc. manufactures a product that costs $25 per unit plus $43,000 in fixed costs each month.…

A: Relevant costs are the costs which are relevant to the decision making process. In this question,…

Q: A company produces a special new type of TV. The company has fixed costs of $487,000, and it costs…

A: Profit can be defined as the earnings through business operations which is remained with the…

Q: Wilma Company must decide whether to make or buy some of its compo- nents. The costs of producing…

A: Income statement: A statement that reports the income and expenses of the company is known as income…

Q: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all…

A: Solution:- Calculation of the impact on profits of accepting the order as follows:-- Basic…

Q: The Wood Division of Bramble Corp. manufactures rubber moldings and sells them externally for $50.…

A: Transfer pricing: The amount charged when one division sells the goods or services to another…

Q: Bert Asiago, a salesperson for Convertco, received an order from a potential new customer for 50,000…

A:

Q: The Wood Division of Vaughn Manufacturing manufactures rubber moldings and sells them externally for…

A: Given, Variable cost is = $ 25 per unit Fixed cost is = $ 8 per unit Division to transfer = 4300…

Q: repare an incremental analysis showing whether the company should make or buy the switches. (Enter…

A: calculation for additional cost incurred are as follows:

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: Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and…

A: Operating Income = Sales -Purchase -Shipment cost - Fixed Cost

Q: The Alpha Company produces microchips used in cellphones. Each microchip is priced at P45 and the…

A: The relevant cost is the cost incurred for the special order. The relevant cost in this case, will…

Q: Riders, Ltd. is a manufacturer that produces motorized scooters. Currently, it is producing the…

A: Avoidable Cost is relevant cost in decision making process. and unavoidable cost is not relevant in…

Q: Mighty Safe Fire Alarm is currently buying 61,000 motherboards from MotherBoard, Inc. at a price of…

A: To choose option we have to compare both ways expenses by calculating the total expenses of product…

Q: Refer to the information for Smooth Move Company on the previous page. If SmoothMove accepts the…

A: For analysis of special order, incremental revenues and incremental expenses are calculated for…

Q: Robinson Computers makes 5,700 units of a circuit board, CB76, unit is $180 and fixed cost per unit…

A: Old machine =6800 Annual operating costs =18000 Life = 5years  New machine =8800 Life =5 years…

Q: A manufacturer offers to deliver to a dealer 300 chairs at Php 360 per chair and to reduce the price…

A: We can solve this problem by developing an equation and then solving it in excel using the solver…

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: Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total…

A: Fixed cost remain fixed whatever may be the level of output where as variable cost will vary with…

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: Mighty Safe Fire Alarm is currently buying 57,000 motherboards from MotherBoard, Inc., at a price of…

A: Formulas:

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: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all…

A: Introduction: In the decision making, incremental cost plays a vital role in assessing whether a…

Q: Concord, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of…

A: Given information, •Un-assembled product: Cost= $13 Selling price= $54   •Assembled product:…

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: "In my opinion, we ought to stop making our own drums and accept that outside supplier's offer,"…

A: In make or buy decision we evaluate both costs , making in our own plant and buying from…

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

A: Formulas:

Q: Waterways has discovered that a small fitting it now manufactures at a unit cost of $1.00 could be…

A: Working Note: Purchasing Cost = No. of units needed x Purchasing Cost per unit = 465,000 units x…

Q: Bert Asiago, a salesperson for Convertco, received an order from a potential new customer for 50,000…

A: Relevant costs:   Relevant costs are those costs in any managerial decision-making process that…

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: Kobe Company has manufactured 200 partially finished cabinets at a cost of $102,000. These can be…

A: Incremental income = Incremental Sales revenue – Incremental costs

Q: Mighty Safe Fire Alarm is currently buying 55,000 motherboards from MotherBoard, Inc., at a price of…

A:

Q: Waterways has discovered that a small fitting it now manufactures at a unit cost of $1.00 could be…

A: Opportunity cost refers to that cost which is saved in case one alternative is selected over the…

Q: Mighty Safe Fire Alarm is currently buying 57,000 motherboards from MotherBoard, Inc. at a price of…

A: Comparing the cost in both cases i.e buy and make and whose cost is less and increase the profit…

Q: Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can…

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