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Tamarisk Company produces golf discs, which it normally sells to retailers for $8 each. The cost of manufacturing 20,400 golf discs is: Materials Labour Variable overhead Fixed overhead Total $11,424 29,988 Less V 19,380 Tamarisk also incurs 10% sales commission ($0.80) on each disc sold. Oak Corporation offers Tamarisk $4.80 per disc for 5,100 discs. Oak would sell the discs under its own brand name in foreign markets not yet served by Tamarisk. If Tamarisk accepts the offer, it will incur a one-time fixed cost of $5,400 due to the rental of an imprinting machine. No sales commission will result from the special order. Fixed cost 39,500 Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) $100,292 Incremental contribution margin $ Incremental income Incremental cost: $

Tamarisk Company produces golf discs, which it normally sells to retailers for $8 each. The cost of manufacturing 20,400 golf discs is: Materials Labour Variable overhead Fixed overhead Total $11,424 29,988 Less V 19,380 Tamarisk also incurs 10% sales commission ($0.80) on each disc sold. Oak Corporation offers Tamarisk $4.80 per disc for 5,100 discs. Oak would sell the discs under its own brand name in foreign markets not yet served by Tamarisk. If Tamarisk accepts the offer, it will incur a one-time fixed cost of $5,400 due to the rental of an imprinting machine. No sales commission will result from the special order. Fixed cost 39,500 Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) $100,292 Incremental contribution margin $ Incremental income Incremental cost: $

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 3PA: Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes...
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Tamarisk Company produces golf discs, which it normally sells to retailers for $8 each. The cost of manufacturing 20,400 golf discs is: Materials Labour Variable overhead Fixed overhead Total $11,424 29,988 19,380 Tamarisk also incurs 10% sales commission ($0.80) on each disc sold. Oak Corporation offers Tamarisk $4.80 per disc for 5,100 discs. Oak would sell the discs under its own brand name in foreign markets not yet served by Tamarisk. If Tamarisk accepts the offer, it will incur a one-time fixed cost of $5,400 due to the rental of an imprinting machine. No sales commission will result from the special order. Less 39,500 Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,275.) $100,292 Incremental contribution margin $ Fixed cost Incremental income V Incremental cost: $
Transcribed Image Text:Tamarisk Company produces golf discs, which it normally sells to retailers for $8 each. The cost of manufacturing 20,400 golf discs is: Materials Labour Variable overhead Fixed overhead Total $11,424 29,988 19,380 Tamarisk also incurs 10% sales commission ($0.80) on each disc sold. Oak Corporation offers Tamarisk $4.80 per disc for 5,100 discs. Oak would sell the discs under its own brand name in foreign markets not yet served by Tamarisk. If Tamarisk accepts the offer, it will incur a one-time fixed cost of $5,400 due to the rental of an imprinting machine. No sales commission will result from the special order. Less 39,500 Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,275.) $100,292 Incremental contribution margin $ Fixed cost Incremental income V Incremental cost: $
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