By how much would the special order increase or decrease

Reference no: EM131891161

Assignment

Julian' Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 50.000 units per month is as follows:

Direct materials	$ 32.50
Direct labor	7.20
Variable manufacturing overhead	1.30
Fixed manufacturing overhead	20.90
Variable selling and administrative expense	1.90
Fixed selling and administrative expense	7.30
	$ 71.10

The normal selling price of the product is $75.00 per unit.

An order has been received from an overseas customer for 3.000 units to be delivered this month at a special discounted price of $65.60 each. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $0.30 less per unit on this order than on normal sales.

• By how much would this special order increase <decrease> the company's net operating income for the month? Show your work and label your answers.

Reference no: EM131891161

Questions Cloud

Compute contribution percentage : Craigs Air Conditioning/Heating reported the following information: Revenues -$33,500. Compute contribution percentage

Capital budgeting criteria-mutually exclusive projects : Capital Budgeting Criteria: Mutually Exclusive Projects - Project S costs $15,000, and its expected cash flows would be $4,500 per year for 5 years.

What are your objectives in the given situation : Suppose you are in the market for a new car to be used mainly for commuting to work, shopping, running errands, and visiting friends.

Future value of the amount : what would be the future value of the amount you will pay for the service contract?

By how much would the special order increase or decrease : By how much would this special order increase the company's net operating income for the month? Show your work and label your answers.

What is the npv associated with leasing the equipment : a. What is the NPV associated with leasing the equipment versus borrowing and buying? it?

What is the operating cash flow : If the tax rate is 35 percent, what is the operating cash flow, or OCF?

Disputes arising between buyer and Seaway Volkswagen : Suppose Mr. and Mrs. Robinson find in the original paperwork with Seaway Volkswagen that there is a contractual agreement with a provision that says.

What is the diluted earnings per share for 2015 : If each share of preferred stock is convertible into 2 shares of common stock, what is the diluted earnings per share for 2015?

User Account

All Pages