User Account

All Pages

By how much will vals income change

Assignment Help Accounting Basics
Reference no: EM132103794

Question - Val Company currently has the capacity to manufacture 250,000 widgets a year. The widgets normally sell for $8.00 each.
Val Company has the following costs related to manufacturing and selling 200,000 widgets:

Direct materials $300,000

Direct labor $540,000

Variable manufacturing overhead $180,000

Depreciation on equipment only used for the widgets $40,000

Depreciation on factory $100,000

Salary of widget production manager $70,000

Variable selling costs (commissions) $60,000

Fixed selling costs $80,000

Total $1,370,000

Assume Minot Inc. asks Val to complete a manufacture a special order of 10,000 widgets. Minot is willing to pay $5.50 per widget (and the sales commission will apply on this special order).

By how much will Vals income change if they accept the special order?

Reference no: EM132103794

Questions Cloud

Arithmetic and geometric average return : What's the difference between the arithmetic and geometric average return (conceptually, not mathematically), and when is it best to use each?
Identical straight bond : What can you say about the coupon rate on a callable bond compared to an otherwise identical straight bond? Why?
Topic of security markets and finance : When on the topic of security markets and finance, when looking at coupon rate on a callable bond compared to an otherwise
Topic of security markets and finance : Why does market efficiency matter in the stock market? On the topic of security markets and finance.
By how much will vals income change : Assume Minot Inc. asks Val to complete a manufacture a special order of 10,000 widgets. By how much will Vals income change if they accept the special order
What lessons are being taught to the young audiences : Go to each and watch it. Then, discuss the type of socialization each provides. To be specific, what lessons are being taught to the young audiences?
Implement the application for a pizza shop : ITECH5403 – Comparative Programming Languages - Parallel Implementations - creating a program for a pizza shop - however, as this is a comparative languages
What were the consolidation entries needed as of december : If the equity method had been applied by Vacker for this acquisition, what were the consolidation entries needed as of December 31, 2015
How much overhead cost is expected to be allocated : How much overhead cost is expected to be allocated to the deluxe product line if machine hours is the chosen cost driver

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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