What are some considerations in accepting or rejecting this order?

Q: aime Ltd manufactures and sells a small electric product to order for the computer industry. The…

A: The income statement is prepared to find the net income or losses incurred during the period.

Q: Shelby Industries has a capacity to produce 45,000 oak shelves per year and is currently selling…

A: Shelby Industries has capacity to produce 45,000 oak shelves per year.   But they are Currently…

Q: The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry…

A: Transfer Price: Sometime when a company is very huge they manufacture one part for their further…

Q: A manager of ABC Sporting Goods is considering accepting an order from an overseas customer.  This…

A: At the time of taking decision for accepting or rejecting special order, contribution margin per…

Q: CNR Computer is considering moving some of its operations overseas in order to reduce labour costs.…

A: Production Cost- Production costs are the expenses incurred by a manufacturer while producing a…

Q: The EKTA’s main competitor does not manufacture their bicycle frames. They purchase the frames from…

A: The manufacturing cost is the cost of converting raw material into finished goods. It includes the…

Q: The JMI Creamery Co. produces ice-cream bars for vending machines and has an annual demand for 72000…

A: As student requested to answer only first two parts. Hence only 2 parts are answered8

Q: McAfee Industries, a manufacturer of electronic parts, has recently received an invitation to bid on…

A: Calculate the contribution margin (price – variable costs) per unit for the special order &…

Q: Intercontinental’s special order also requires 1,000 kilograms of genatope, a solid chemical…

A: Managerial accounting:   Managerial accounting is more focused towards analyzing information and…

Q: Dunia Kids Company produces toys and plans to produce a small game. The new game will be sold for 3…

A: Selling price per unit of game: 3.00 Dinar Variable cost per unit of game: 1,250 fils or 1.25 Dinar…

Q: General Mills makes Nature Valley granola bars, Cheerios cereal, Yoplait yogurt, Haagen-Dazs ice…

A: Cost Volume profit analysis is used to determine how the profits of the company are affected if we…

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: A manager of Burns Sporting Goods Company is considering accepting an order from an overseas…

A: Variable cost = 18 Total cost = 25 New order selling price = 22 Fixed cost is incurred irrespective…

Q: What is the optimal order quantity with respect to so many lot sizes? What would be the optimal…

A: Given information is: Bostick Company is a distributor of air filters to retail stores. It buys its…

Q: shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is…

A: The cross over point is the point where total costs of different alternative are equal.

Q: Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The…

A:

Q: A manager of Varden Sporting Goods Company is considering accepting an order from an overseas…

A: As a part of analysis for accepting or rejecting the order, revenue and variable cost are compared…

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: Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells…

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

Q: Country Jeans Co. has an annual plant capacity of 65,600 units, and current production is 46,300…

A: Revenue = No. of units  x Selling price = 16,100 units x $26 each = $418,600 Variable manufacturing…

Q: Martin's Company has purchased 20,000 pumps annually from Andres Company. Due to price increasing…

A: Make or buy decision is a part of management accounting in which the total cost of buying the…

Q: Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting in…

A: The computation is done below:

Q: Neptune Company has developed a small Inflatable toy that It Is anxlouUs to Introduce to Its…

A: Break-even point: A breakeven analysis is a calculation of the point at which revenue equals…

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: Pottery land Inc. has been manufacturing its own finials for its curtain rods. The company is…

A: a. Incremental analysis of make or buy finials:First af all,  lets calculate the curent cost of…

Q: Mohave Corp. is considering outsourcing production of ht eumbrella tote bag included with some of…

A: Calculation of above requirement are as follows

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

A: Formulas:

Q: A manager of Burns Sporting Goods Company is considering accepting an order from an overseas…

A: Variable cost is a cost that change with activity or production volume and are recorded in inventory…

Q: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling…

A: Incremental Revenue = Special order no. of units x Special order sales price per unit = 1,200 x $26…

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: The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of…

A: Given information is: The Croydon division of CC Industries supplies the Hauser division with…

Q: A manager of Varden Sporting Goods Company is considering accepting an order from an overseas…

A: Special orders are to evaluated based on Relevant costs. Relevant costs are those costs which change…

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: Wham Products, a maker of specialty products, is currently manufacturing and selling a product…

A: Normal units when the special order is considered=400000-5000=395,000

Q: A manager of Varden Sporting Goods Company is considering accepting an order from an overseas…

A: Contribution Margin: Contribution Margin refers to the margin of profit expected by the company.…

Q: Norton Industries, a manufacturer of electronic parts, has recently received an invitation to bid on…

A: A decision-making process includes to decide whether a product should be sold at a specified price…

Q: Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The…

A: The company has an installed capacity of 50,000 units and currently producing 45,000 units. The…

Q: Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of…

A: The differential analysis is performed when two alternatives are available with the organisation.

Q: The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of…

A: Promotional expense refers to the cost, a corporation incurs for marketing its products or services…

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

A:

Q: Phelps Industries is a multi-product company that currently manufactures 30,000 units of part ST35…

A: Differential analysis helps manager to evaluate costs and revenue that can arise from taking up…

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…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.