Ross has received a special order for 10,000 units of its product at a special price of $15. The product normally sells for $22 and has the following manufacturing costs:    Per unit Direct materials   $ 6 Direct labor     4 Variable manufacturing overhead     3 Fixed manufacturing overhead     7 Unit cost   $ 20   Assume that Ross has sufficient capacity to fill the order. If Ross accepts the order, what effect will the order have on the company’s short-term profit?

Q: Gallerani Corporation has received a request for a special order of 5,500 units of product A90 for…

A: Fixed cost are irrelevant and not to be considered  In decision making. Here incremental  approach…

Q: NUBD Co. has 24,000 defective units of a product that cost P8 per unit to manufacture, and can be…

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Q: Capitol has received a special order for 2,050 units of its product at a special price of $155. The…

A: A special order is any customer request for items or services that a firm does not normally handle.…

Q: Crystal has received a special order for 4,000 units of its product. The product normally sells for…

A: Minimum selling price = incremental revenue/number of units

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Q: Peach has received a special order for 10,000 units of its product. The product normally sells for…

A: Formulas: Unit price = (Profit + Incremental cost)/ Number of units

Q: A customer has requested that Lewelling Corporation fill a special order for 3,200 units of product…

A: Incremental revenue=Special order units×Price per unit=3,200×$28=$89,600

Q: The Mixed Products Company sells one of its products for $180 per unit.  The Company incurs the…

A: Fixed manufacturing overhead is not relevant cost as it will remains same if accept a one-time only…

Q: Lyca Company is currently operating at a loss of P20,000. The sales manager has received a special…

A: In the given question, the company is current incurring a loss of P 20,000. The company wants its…

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

A: Income under the accounting terms refers to the business profit that is retained after paying all…

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: ABC Company has received a request for a special order of 6,000 units of product A for $21.20 each.…

A: Increase (decrease) in operating income if special order is accepted = (Sales price per unit -…

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: How do i calculate the net income for a special order?   For example: Blowing Sand Company has just…

A: Special orders decisions: Special orders are orders received at special prices and for bulk…

Q: Theta company has received a special one-time order for 1,500 light fixtures (units) at P15 per…

A: Contribution margin formula: =Desired profit level+ Fixed cost Contribution margin of per unit…

Q: If the special order is excepted what is the impact on the companies overall net operating income?

A: An entity having spare capacity can accept special order at a price that is greater than the…

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

A:

Q: what is the impact on the companies overall net operating income?

A: Income or Profits generated through an organisation’s day to day activity is known as operating…

Q: Thornton Industries has 2,700 defective units of product that already cost $28 each to produce. A…

A: Sunk cost: Sunk costs are those costs which an entity has already incurred and cannot be recovered.…

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: Regis Company makes the plugs it uses in one of its products at a cost of P36 per unit. This cost…

A: Variable cost per unit = Total costs - fixed overhead = P36 - 8 = P28 per unit

Q: the amount of the relevant costs that would be saved by using the released facilities in the…

A: Given in the question: Production (in Units) 20000 Cost per unit is as below:   Direct…

Q: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Potter has received a special order for 11,000 units of its product at a special price of $15. The…

A: Here it is given that there is capacity constraint, hence if the company accepts special order then…

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: Helix Company has been approached by a new customer to provide 2,000 units of its regular product at…

A: Sales revenue: It is the revenue earned by a business on selling the goods and services to the…

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

A:

Q: Goshford Company produces a single product and has capacity to produce 100,000 units per month.…

A: Net income: Net income is the residual amount left after deducting all the expenses incurred by the…

Q: Walnut has received a special order for 2,500 units of its product at a special price of $230. The…

A: As the company is already operating at full capacity effect of this decision should be difference in…

Q: Walnut has received a special order for 2,400 units of its product at a special price of $240. The…

A: Answer)   If the company accepts the offer, it will incur variable expenses like Direct Materials…

Q: Helix Company has been approached by a new customer to provide 3,200 units of its regular product at…

A:

Q: Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000.…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Bright Limited is considering whether or not to accept a special contract to supply 2,000 identical…

A: Solution The relevant cost are those which cost which increases / decreases the total cost of…

Q: Avocado has received a special order for 2,400 units of its product at a special price. The product…

A: Total special order price = Incremental cost per unit + Incremental profit per unit.    Fixed cost…

Q: A customer has requested that Lewelling Corporation fill a special order for 2,700 units of product…

A: Given that: Special order units = 2700 units  Price per unit = $33 per unit

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: 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: 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: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its…

A: Sage company is operating at 90% of capacity Currently, a part is purchasing which is used in…

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: John has received a special order for 100 units of its product at a special price of $2,100. The…

A: Special orders are usually one-time and do not attract a fixed cost. So, if the firm has the…

Q: our Corporation has received a request for a special order of 6,000 units of its product for $19…

A: Your Corporation has received a request for a special order of 6,000 units of its product for $19…

Q: Randall has received a special order for 4300 units of its product at a special price of $20. The…

A: Special orders are usually one-time and do not attract a fixed cost. So, if the firm has the…

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: A company contemplating the acceptance of a special order has the following unit cost behavior,…

A: Fixed cost for special order is irrelevant because fixed cost will not change with the special…

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.…