Calc inc owns a machine that produces baskets for the gift

Assignment Help Accounting Basics
Reference no: EM13588864

Calc, Inc. owns a machine that produces baskets for the gift packages the company sells. The company uses 900 baskets in production each month. The costs of making one basket is $4 for direct materials, $3 for variable manufacturing overhead, $2 for direct labor, and $5 for fixed manufacturing overhead. The unit cost is based on the monthly production of 900 baskets. The company determined that 30% of the fixed manufacturing overhead is avoidable. An outside supplier has offered to sell Calc the baskets for $13 each, and can supply all the units it needs. Prepare an incremental analysis to determine if Calc should buy the baskets from the supplier. Show the impact on net income and indicate whether they should make or buy the baskets.

Reference no: EM13588864

Questions Cloud

When the project concludes in four years the working : oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the companys discount
Land was sold for 35000 the land was received as a property : spencer duck sssn 000-22-111 is single and his eight year old son mitch lives with him nine months of the year in a
Refer to the most recent financial statements and related : refer to the most recent financial statements and related disclosure notes of walmart stores inc. managements
It is the first year of operations at johnnys subs and the : it is the first year of operations at johnnys subs and the cost of all work in process during the year is 830000.
Calc inc owns a machine that produces baskets for the gift : calc inc. owns a machine that produces baskets for the gift packages the company sells. the company uses 900 baskets in
What is an example of a significant accounting estimate : what is an example of a significant accounting estimate? what is the importance of these estimates? how do ethics play
The stockholders equity section of tkachuk corporation : the stockholders equity section of tkachuk corporation appears below as of december 31 2014. 8 preferred stock 50 par
Mike carlson will receive 16000 a year from the end of the : mike carlson will receive 16000 a year from the end of the third year to the end of the 16thyear 14 payments. the
The financial records of leroi jones inc were destroyed by : the financial records of leroi jones inc. were destroyed by fire at the end of 2014. fortunately the controller had

Reviews

Write a Review

Accounting Basics Questions & Answers

  Eloise is a sales representative for a video production

eloise is a sales representative for a video production company. while at an exposition she incurs 2000 in

  Write a business memo format is in the second document of

introduction having the ability to effectively communicate is one of the most important skills a business executive can

  Heavy load inc has sales of 3450000 total assets of 1240000

heavy load inc. has sales of 3450000 total assets of 1240000 and total liabilities of 275000 which consist strictly of

  Mathews and company has 112000 in an accrued payroll

mathews and company has 112000 in an accrued payroll account. the companys weekly payroll is 186700 and the accrual

  How does a business process and activity-based approach

the recruitment department of a major company has 13 staff including a manager 7 recruiters and 5 administrators. the

  What was the account balance at the end of specific year

At the end of the sixth year, the account balance was transferred to a bank paying 10%, and annual deposits of $80,000 were made at the end of each year from the seventh through the tenth years. what was the account balance at the end of the tenth..

  What is the adjusting entry for the accrued interest

On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note?

  Accordance with professional pronouncements

For which of the segments would information have to be disclosed in accordance with professional pronouncements? A. Segments A, B, C, and D b. Segments A, B, and C c. Segments A and B d. Segments A and D 57. In January 2011, Post, Inc.

  To complete this problem you may wish to use the excel

cash9000investments short-term4000accounts receivable13000inventory22000notes receivable

  What would the annual cost of additional supervision have

hadley inc. makes a line of bathroom accessories. because of a decline in sales the company has 10000 machine hours of

  The snap-it-open corporation incorporated and began

the snap-it-open corporation incorporated and began operations in january 15 of the current year. its address isxxxxx

  Determine whether to retain or replace equipment

The new machine will lower the annual variable manufacturing cost from $600,000 to $500,000. Prepare an analysis showing wheaher the old machine should be retained or replaced.

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