Advise tan or whether he should accept the special order

Assignment Help Managerial Accounting
Reference no: EM132534406

Tan runs a shop called 'all juice station' which produces 3,500 bottles of fresh apple juice every day to meet his regular customers' demands. the production capacity is 5,000 bottles a month. the cost of making a bottle of fresh apple juice is rm2.75, which goes into material and labour. manufacturing overheads are fixed at rm1,500 per day. terry who owns a restaurant, has a made a special offer of buying rm1.60 per bottle from him and selling it under a generic name, 'terry's juice.' terry wants to order 1,000 bottles each month.

Required:

Question 1: Advise tan or whether he should accept the special order.

Reference no: EM132534406

Questions Cloud

What are some factors that customers look for in restaurant : Your client has a restaurant in the province. Their main customers are locals from that province. What are some factors that customers look for in a restaurant?
Describe how the structure of the tissue relates : Can someone help me describe how the structure of the tissue relates to its function to bone and blood.
Explain major source documents used in job order costing : Explain major source documents used in job order costing system. Discuss the role(s) of information technology in job costing system for Cerdik Sdn. Bhd.
Describe how the wages of an assembler in the plant : Using the flow of manufacturing costs, describe how the wages of an assembler in the plant would be accounted for in this manufacturing company.
Advise tan or whether he should accept the special order : Advise tan or whether he should accept the special order. Tan runs a shop called 'all juice station' which produces 3,500 bottles of fresh apple juice
Evidence for the increased production : What tissue would provide evidence for the increased production of red blood cells following doping with erythropoietin?
Find and calculate the product contribution margin : Calculate The product's contribution margin, Break-even quantity, NPV, IRR.Later, the company is considering the purchase of machinery
What determines the mass number : What determines the mass number (12, 13,14 or 16, 17, 18) in the different isotopes?
What is the device that can simulate the live high : What is the device that can simulate the "live high, train low" conditions in the comfort of your own home?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Monthly variable costs to process into staples

Grade A wire requires $450,000 of monthly variable costs to process into staples, which can be sold in the market on 5/1/XX for $7.00 per pound. Grade B wire requires $600,000 of monthly variable costs to process into paperclips, which can be sold in..

  Estimate the cost of an individual and a business return

Use ABC to estimate the cost of an individual and a business return.  Make clear any assumptions you have made

  Compute the net present value of the investment discounted

Compute the Net Present Value of this investment discounted at 5% for 10, 20 and 30 years.JackJoe, Inc. has an opportunity to purchase solar panels

  Company should get out of the golf club business

Note that under full costing, the company is showing a substantial loss in 2011. Based on the limited information available, does it appear that the company should get out of the golf club business?

  Determine the cost per equivalent unit

Identitify two major estimates that determine the cost per equivalent unit.

  What amount was included in the company flex budget

What amount was included in the company's flex budget for direct materials? How many yards of cotton fabric were used in production during 2016?

  Perform the overhead analysis using activity-based costing

ACCT204 Management Accounting - Analyse the cost versus benefit considerations in adopting ABC system in Happy Traveller Ltd.

  Northwood company manufactures basketballs the company has

northwood company manufactures basketballs. the company has a ball that sells for 25. at presentthe ball is

  Contribution format income statement

In contrasting a traditional format income statement to a contribution format income statement, which to believe would be more useful for management

  Compute the direct materials price and efficiency variances

Compute the direct manufacturing labour rate and efficiency variances for the quarter. Compute the direct materials price and efficiency variances

  Prepare a simple balance sheet of assets and liabilities

Assume that Banc One receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and liabilities for Banc One immediately after the deposit is received.

  How can the manager of snowmobile sales at arctic cat

How can the manager of snowmobile sales at Arctic Cat use flexible budgets to enhance performance?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd