How do i calculate the net income for a special order? For example: Blowing Sand Company has just received a one-time offer to purchase 10,200 units of its Gusty model for a price of $34 each. The Gusty model costs $36 to produce ($29 in variable costs and $7 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order.
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Q: Your Company has just obtained a request for a special order of 6,000 units to be shipped at the end…
A: Given,
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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
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A: Profit is defined as the monetary value which is earned by the individual or an organization, when…
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A: revenue earned from Special Order will be 2000 Units * $18 per unit= $36,000.
Q: A company is considering a special order for 1,000 units to be priced at $8.90 (the normal…
A: Relevant costs and Relevant revenues of the special order are the costs that are to be incurred for…
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…
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: 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…
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A: Given information is: A company receives a special order for 200 units that requires stamping the…
Q: Immanuel Company has just obtained a request for a special order of 6,000 jigs to be shipped at the…
A: (B). $12,600 increase
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A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
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A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
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A: It is given that the units sold are 84,000 and the selling price is $120 per unit, the direct…
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A: Sales revenue: It is the revenue earned by a business on selling the goods and services to the…
Q: BY HOW MUCH WILL PROFIT INCREASE/ DECREASE IF THE ORDER IS ACCEPTED?
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A:
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
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A: Net income: Net income is the residual amount left after deducting all the expenses incurred by the…
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A: The differential analysis is performed to compare the two alternatives available to manufacture the…
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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: Contribution margin income statement: It is a kind of income statement which reports the sales,…
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A: Decision: The Company should accept the offer as it generates contribution amounting 673400
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A: Given that: Special order units = 2700 units Price per unit = $33 per unit
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A: Relevant cost per unit = variable cost per unit = $24 per unit
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A: The fixed manufacturing overhead is unavoidable. Therefore, it should not consider for the Make or…
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: Cost means the money related estimation of consumptions for materials, supplies, administrations,…
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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…
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A: Formulas: Profit = Number of units * (Offer price - Variable cost)
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A: There are two types of costs incurred in business. One is fixed costs, which do not change with…
How do i calculate the net income for a special order?
For example: Blowing Sand Company has just received a one-time offer to purchase 10,200 units of its Gusty model for a price of $34 each. The Gusty model costs $36 to produce ($29 in variable costs and $7 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order.
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- A company is negotiating with a potential supplier for the purchase of 100,000 widgets. The company estimates that the supplier’s variable costs are $5 per unit andthat the fixed costs, depreciation, overhead, and so on, are $50,000. The supplierquotes a price of $10 per unit. Calculate the estimated average cost per unit. do youthink $10 is too much to pay? Could the purchasing department negotiate a betterprice? How?Luca Inc. has received a special order for 2,000 units of its product at a special price of $75. The product normally sells for $100 and has the following manufacturing costs: Assume that Luca Inc. has sufficient capacity to fill the order without harming normal production and sales. If Luca Inc. accepts the order, what effect will the order have on the company's short-term profit? Per Unit Direct materials $30 Direct labor $20 Variable manufacturing overhead $15 Fixed manufacturing overhead $25 a. $50,000 decrease b. $30,000 increase c. $20,000 increase d. $30,000 decreaseDiskmar has received a special order for 2,000 units of its product at a special price of $75. The product normally sells for $100 and has the following manufacturing costs:Direct material costs are $30; Direct labor costs are $20; and Variable Overhead costs are $15. Assume that Diskmar has sufficient capacity to fill the order without harming normal production and sales. a. If Diskmar accepts the order, what effect will the order have on the company's short-term profit? b. What minimum price should Diskmar charge to achieve a $25,000 incremental profit? c. Now assume Diskmar is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Diskmar accepts the order, what effect will the order have on the company's short-term profit?
- Sundial Company manufactures and sells watches for $44 each. Tick−Tock Company has offered Sundial $25 per watch for a one−time order of 5,700 watches. The total manufacturing cost per watch is $29 per unit and consists of variable costs of $21 per watch and fixed overhead costs of $8 per watch. Assume that Sundial has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special sales order? A. decrease of $22,800 B. increase of $22,800 C. increase of $142,500 D. decrease of $142,500Sundial Company manufactures and sells watches for $42 each. Tick-Tock Company has offered Sundial $30 per watch for a one-time order of 5,600 watches. The total manufacturing cost per watch is $30 per unit and consists of variable costs of $22 per watch and fixed overhead costs of $8 per watch. Assume that Sundial has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special sales order? O A. decrease of $168,000 O B. increase of $168,000 O C. decrease of $44,800 O D. increase of $44,800Ross 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?
- Adams Furniture receives a special order for 10 sofas for a special price of $6,000. The direct materials and direct labor for each sofa are $140. In addition, supervision and other fixed overhead costs average $160 per sofa. a1. What is the impact on operating income from accepting the special order? a2. Based solely on a short-term financial analysis, should Adams accept the special order? b1. If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers if the special sales order is accepted and the selling price per unit on regular sales equals $900? b2. Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity? Complete this question by entering your answers in the tabs below. Req A1 Show Transcribed Text Req A1 What is the impact on operating income from accepting the special order? Operating income would per sofa. Yes ONO Reg A2 Req A1…Dexter Company has been approached by a new customer with an offer to purchase 1,400 units of Dexter's product at a price of P3 each. The new customer is graphically separated from Dexter's other customers, and there would be no effect on existing sales. Dexter normally produces 10,000 units but only plans to produce and sell 8,000 in the coming year. The normal sales price is P5 per unit. Unit cost information is as follows: Direct materials P0.75 Direct labor 0.80 Variable overhead 0.40 Fixed Overhead 2.00 Total 3.95 If Dexter accepts the order, no fixed manufacturing activities will be affected because there is sufficient excess capacity. However, the distribution center at the warehouse is operating at full capacity and would need to add capacity costing P1,000 for every 5,000 units to be packed and shipped. BY HOW MUCH WILL PROFIT INCREASE/ DECREASE IF THE ORDER IS ACCEPTED?Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Helix Company is approached by a new customer to provide 1,800 units of its product at a special price of $9 per unit. The normal selling price of the product is $11 per unit. Helix is operating at 80% of its capacity of 11,500 units. No incremental fixed overhead will be incurred because of this order. Also, there will be no incremental fixed general and administrative costs because of this order. QS 23-2 (Algo) Special offer LO P7 a. Special selling price of $9.00 per unit b. Direct materials of $2.00 per unit c. Direct labor of $3.00 per unit d. Variable overhead of $2.50 per unit e. Fixed overhead of $.75 per unit f. Fixed general and administrative costs of $.60 per unit Based on income, should Helix accept this new customer order at the special price? Sales Variable costs SPECIAL OFFER ANALYSIS Direct materials Direct labor Variable overhead…
- Use this information for Falcon Co. to answer the question that follow.Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $19 per unit. Fixed costs are $25,000 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,500 units with a special price of $20 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $1 per unit would be eliminated.If the order is accepted, what would be the impact on net income?Adams Furniture receives a special order for 10 sofas for a special price of $5,200. The direct materials and direct labor for each sofa are $100. In addition, supervision and other fixed overhead costs average $120 per sofa. Required: a1. What is the impact on operating income from accepting the special order? a2. Based solely on a short-term financial analysis, should Adams accept the special order? b1. If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers if the special sales order is accepted and the selling price per unit on regular sales equals $700? b2. Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity? Complete this question by entering your answers in the tabs below. Req al Req a2 Answer is complete but not entirely correct. Req bl Req b2 If Adams is currently operating at full capacity, what would be the opportunity…Use this information for Falcon Co. to answer the question that follow. Falcon Co. produces a single product. Its normal selling price is $25 per unit. The variable costs are $15 per unit. Fixed costs are $18,800 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,580 units with a special price of $21 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, what would be the impact on net income? a.increase of $10,112 b.increase of $16,432 c.decrease of $7,584 d.increase of $12,640