The Carlo Company has received a special order for 600 units of product B for P12 a unit. It usually sells for P19 a unit with a cost of P15 a unit inclusive of P1.5 a unit as sales commission that will not be paid on this order. The cost also includes P6 in manufacturing overhead, 2/3 of which is a common overhead allocation. Assuming the excess capacity is available and this order requires a mold that costs P150. What is the increase(decrease) in profit for this special order?

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

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.…

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A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

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

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

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A: In this question we have to compare that company should manufacture or buy from outside.

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

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

Q: 1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold? 2.…

A:

Q: Wehrs Corporation has received a request for a special order of 8,300 units of product K19 for…

A: Solution: Revenue from special order = 8300*$45.20= $375,160 Variable cost of special order = 8300 *…

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…

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

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A: Sales Revenue means that amount which a company has received or will receive in the future on…

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A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Roger Corp., which has experienced excess production capacity, received a special offer for its…

A: Answer -  Calculation of Profit / Loss when company accept the special offer :     Particulars…

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

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A: Total variable cost = direct material + direct labor  + variable MOH + Variable selling costs…

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…

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A: Net income is the income left to an entity after subtracting all the expenses from the revenue…

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A: Incremental Cost:-It is an increased difference producing two different types of units, like the…

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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: Gallerani Corporation has received a request for a special order of 6,000 units of product A90 for…

A: In special order decision making we should  not consider Fixed cost that remains constant.

Q: Holly Corp. has received a request for a special order of 9,000 units of product Z74 for $46.50…

A: We should  follow  incremental approach

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

A: Lets understand the basics. When there is special order situation arise, relevant cost of fulfilling…

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

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A:

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…

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A: As my honor Since you have asked multiple parts we will solved first for you if you want re-post…

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A: Contribution margin income statement: It is a kind of income statement which reports the sales,…

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

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A: Formula: Incremental net income = Incremental Revenue - Incremental costs

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A: $3.50 of overhead cost is relevant because only this cost is increasing if making the product.…

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A: Manufacturing Cost: It is also known as the Production Cost or the Product Costs. These are those…

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…

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A: Since you have posted multiple questions, that's why I am answering only the first question. For…

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A: In case of special order acceptance or rejection, decision shall be made Variable Cost of…

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…

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A: There are two types of costs incurred in business. One is fixed costs, which do not change with…

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A: Given: Special Order Selling Price=$15,000 Special Order Sales Units=500 units

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A: If we make the product then Cost per unit of product includes Direct material, Direct Labor,…