Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $20 Unit manufacturing costs:       Variable 11     Fixed 1 The differential revenue from the acceptance of the offer is a.$300,000 b.$52,500 c.$250,000 d.$262,500

Q: Refer to Lopez Corporation. Assume that Lopez has sufficient idle capacity to produce the 1,000…

A: Sales Revenue: Sales revenue is the amount earned by the company by selling the goods or providing…

Q: Use this information for Stryker Industries to answer the question that follow. Stryker Industries…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: Jacoby Company received an offer from an exporter for 21,200 units of product at $16 per unit. The…

A: Differential revenue is additional increase or decrease in revenue between two or more alternative…

Q: Use this information for Stryker Industries to answer the question that follow. Stryker Industries…

A: Income from the offer acceptance = Units * ( Sale Price - Variable Manufacturing Cost)

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A: Lets understand the basics. When there is special order received from the other party then there is…

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

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A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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: Product A is normally sold for $40 per unit. A special price of $34 is offered for the export…

A: Income statement includes revenues, expenses and net income or loss for the company.

Q: Jacoby Company received an offer from an exporter for 25,100 units of product at $18 per unit. The…

A: Since the offer will not affect normal production or domestic sales, hence the differential revenue…

Q: Use this information for Stryker Industries to answer the question that follow. Stryker Industries…

A: Differential cost is the cost which states the difference among the two alternative decisions cost…

Q: What is the amount of income or loss from the acceptance of the offer?

A:

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: XYZ Company's single product has a selling price of $25 per unit. Last year the company reported…

A: Computation of contribution per unit: Total sales=Variable expensesVariable expenses…

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A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

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

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A: Differential Revenue - It is the difference in revenues between two alternatives available with the…

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

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A: The calculation of profit when there is a reduction in sale price is shown hereunder :

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A: A special order means a sales order which is in addition to the sales to regular customers of a…

Q: A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal…

A: Incremental profit is calculated by deducting the contribution loss from the increase in…

Q: Accept Business at Special Price Product A is normally sold for $50 per unit. A special price of…

A: Differential analysis is a schedule prepared to compare between the two or more alternatives present…

Q: A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit…

A: Incremental Profit (Loss) = Profit from Special Order - Loss for the Order foregone   Fixed costs…

Q: MAYAR produces and sells 5,600 of XY per year. Cost data are as follows: Variable manufacturing $115…

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A: Formula: Unit contribution margin = Sales price per unit - variable cost per unit

Q: Accept Business at Special Price Product A is normally sold for $50 per unit. A special price of $30…

A: The special order should be accepted if there is profit from the special order and the special order…

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A: Compute current net income.

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

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A: The acceptance of the offer at a certain price will always depend on the cost of producing one unit.…

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

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A: Answer) Profit = Contribution Margin – Total Fixed Cost Profit = (Selling price per unit – Variable…

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

Q: A business received an offer from an exporter for 10,000 units of product at $17.50 per unit. The…

A: Formula: Total revenue = Total sales units x sales price. Multiplying sales units with sales price…

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A: Solution:- Introduction:- Basic information as follows: Jacoby Company received an offer from an…

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

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A: Answer) Calculation of Shipping Cost Assigned to the customer Shipping Cost Assigned to the customer…

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

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