Special Offer Assume Easy Off Oven Company has excess capacity. The cost to make an oven is $2,000 (1,200 fixed and $800 variable). The ovens can be sold for $3,000. XYZ Company offers to purchase 2,000 ovens at a price of $700 each. Should the company accept this offer and why? Revenues Expenses Net Income Accept Offer Reject
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- Q4: Company XYZ has a choice of two machines to purchase. They both make the same product which sells for 20$. Machine A has FC of 8000$ and per unit cost of 6$. Machine B has FC of 20000$ and per .unit cost of 2$. Under what conditions would you select machine AGood morning, Please answer questions Patsy Smith is planning to sell her special knife for $15 per unit. She purchases units from alocal distributor for $6 each. She can return any unsold units for a full refund. Fixed costs forbooth rental, including lighting and security is $4500.Requireda) Compute the breakeven point in units sold. b) Suppose the unit purchased is $5 instead of $6, the fixed cost increases by $500, butthe selling price is unchanged. Compute the new breakeven point in units sold. c) Using the above data, explain how cost behaviour affects Patsy Smith’s decisionmaking?Same question as above but need help with the following questions please a-2. From an operating profit (loss) perspective for March, should Miles Audio accept the order from Lanoo Custom Systems? b. What is the minimum price Miles Audio should accept to take the special order from Lanoo Custom Systems?
- Sunland Enterprises produces giant stuffed bears. Each bear consists of $16 of variable costs and $13 of fixed costs and sells for $49. A wholesaler offers to buy 9,280 units at $18 each, for which Sunland has the capacity to produce. Sunland will incur extra shipping costs of $1 per bear. Determine the incremental income or loss that Sunland Enterprises would realize by accepting the special order. Incremental profit e Textbook and Media Save for Later $ Attempts: 0 of 1 used Submit AnswerQuestion Help Answer the following questions. Required 1. Dalton Computers makes 5,500 units of a circuit board, CB76, at a cost of $280 each. Variable cost per unit is $160 and fixed cost per unit is $120. HT Electronics offers to supply 5,500 units of CB76 for $260. If Dalton buys from HT it will be able to save $20 per unit of fixed costs but continue to incur the remaining $100 per unit. Should Dalton accept HT's offer? Explain. 2. OK Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: E (Click the icon to view the information.) OK Manufacturing uses straight-line amortization. Ignore the time value of money and income taxes. Should OK replace the old machine? Explain. Requirement 1. Dalton Computers makes 5,500 units of a circuit board, CB76, at a cost of $280 each. Variable cost per unit is $160 and fixed cost per unit is $120. HT Electronics offers to supply 5,500 units of CB76 for $260. If Dalton buys from HT it will be…Farrow Co. expects to sell 500,000 units of its product in the next period with the following results. Sales (500,000 units) Costs and expenses Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses Net income $7,500,000 1,000,000 2,000,000 Net Income 500,000 750,000 The company has an opportunity to sell 50,000 additional units at $12 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 16% and (2) administrative expenses would increase by $215,000. Accept or Reject 1,285,000 5,535,000 $1,965,000 Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $12 per unit. Should the company accept or reject the offer?…
- A VAT-registered realty dealer sold a parking lot at the following terms: Zonal value P 2,000,000 Less: 10% discount 200,000 Selling Price 1,800,000 Compute the Output VAT a. PO b. P 168,000 c. P 216,000 d. P 240,000 O a. Po O b. P 168,000 O c. P 216,000 O d. P 240,000Current Attempt in Progress Your answer is partially correct. Cullumber Company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,600 units at $30 each. Cullumber will incur additional costs of $1 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Cullumber will realize by accepting the special order, assuming Cullumber has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs $ Net income $ Reject $ $ Should Cullumber Company accept the special order? Cullumber company should accept V the special order. Accept 168000 112000 i 56000 $ $ Net Income Increase (Decrease) 168000 112000 56000E5-17 (Algo) Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5) Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required 1 Required 3 Variable costs Fixed costs 515 $ 72,615 149,300 $ 221,915 Number of Canoes Produced and Sold Total costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution margin ratio. 4. Next year Riverside expects to sell 865 canoes. Complete the contribution margin income statement for the company. Required 4 Total cost per unit 7 7 Complete the table. Note: Round your cost per unit answers to 2 decimal places. $ $ 665 $ 7 515 72,615 149,300 221,915 $ 815 0.00…
- A manufacturer offers to deliver to a dealer 300 chairs at Php 360 per chair and to reduce the price per chair on the entire order by Php 1.00 for each additional chair over 300. How many chairs should the manufacturer deliver to obtain the largest possible amount? Hide answer choices a А) 390 в) з30 300 D 360Susan Carrie is planning to sell her special pottery for $25 per unit. She purchases units froma local distributor for $11 each. She can return any unsold units for a full refund. Fixed costsfor booth rental, including lighting and security is $8500.Requireda) Compute the breakeven point in units sold. b) Suppose the unit purchased is $9 instead of $11, the fixed cost increases by $2000,but the selling price is unchanged. Compute the new breakeven point in units sold. c) Using the above data, explain how cost behaviour affects Patsy Smith’s decision-making?Q1. Murray furniture store sells couches as a retailer. The wholesale cost to them of their most popular model of couch varies depending on how many they purchase for sale. For the first 200 couches the cost is $299 each; for the next 200 couches it drops to $250 each; and for every couch after that it costs $225. Create an excel function using the IF function to show the gross profit under the following scenarios: a. b. It sells at a price of $650 and 350 units are purchased for sale and sold It sells at a price of $625 and 300 units are purchased for sale and sold It sells at a price are $700 and 1,000 units are purchased for sale and sold C.