Calculate kemper should establish a selling price of

Assignment Help Cost Accounting
Reference no: EM132548006

The Kemper Company sells a product at a price of $21 per unit. Kemper's cost per unit based on a full capacity utilization of 200,000 units is:

Direct material $ 4

Direct labor 5

Manufacturing overhead (2/3 of which is fixed) 6

Total $15

A special order for 20,000 units has been offered by a foreign importer if Kemper can price the product more competitively than $21 per unit. The only selling costs that would be incurred with the special order are $3 per unit for shipping. Kemper has enough existing capacity to produce the 20,000 units.

Question a) Calculate the minimum selling price it should set to accept the order.

Question b) To increase its profitability by $40,000, Kemper should establish a selling price of (Calculate)

Reference no: EM132548006

Questions Cloud

Show how the costs would be apportioned to each department : Show how the costs would be apportioned to each department? A factory has two production departments: preparation and assembly
Construct a turing machine which encrypts passwords : Construct a Turing machine which encrypts passwords using the Zn algorithm. Describe how the machine works - Design a DFA which accepts valid encrypted password
What was the total direct manufacturing cost variance : What was the total direct manufacturing cost variance for the firm's May production performance? Compute Material quantity variance cost
What are the impacts of disease on the individual : What are the impacts of disease on the individual, family, economy, society, nation, and the world?
Calculate kemper should establish a selling price of : To increase its profitability by $40,000, Kemper should establish a selling price of (Calculate). Calculate the minimum selling price it should set
Rest of the solar system formed : The oldest rocks on the surface of the Earth today date to approximately 4.2 billion years ago. The Earth and the solar system
Prepare income statement with a functional format for wynn : Prepare a income statement with a contribution margin format for Wynn auto parts. Prepare a income statement with a functional format for Wynn
Describe the relationship of the skeletal system : Describe the relationship of the skeletal system to the respiratory system:
Component of a homeostatic mechanism : Explain how each component of a homeostatic mechanism works to ensure an organism stays alive.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Develop an automatic process costing system

You need to develop an automatic process costing system based on the FIFO method that will calculate LSW's ending inventory and cost of goods manufactured for every period.

  Prepare the consolidation worksheet entries

Prepare the consolidation worksheet entries necessary for preparation of the consolidated financial statements for Geraldton Ltd and its subsidiary for the year ended 30/6/2012

  How might an organization craft compensation

How might an organization craft compensation and other rewards if employees meet or exceed performance expectations, but discourage budgetary slack?

  How report-form and account-form balance sheets differ

Prepare a retained earnings statement - prepare a report form of balance sheet, assuming that the current portion of the note payable is $7,000.

  Please make the appropriate entry or entries

Under FAS 123R, how would this transaction be reported in SAS's 12/31/09 year-end financial statements-would these terminated options result in some sort of an adjustment? If there is an adjustment, please make the appropriate entry or entries?

  Financial statements for any publicly traded corporation

Create a PowerPoint presentation for the potential new business owner that compares and contrasts the three main business forms and addresses advantages and disadvantages of each form.

  Prepare a sales and production budget

Prepare a sales and production budget for January, February, and March, and prepare a cash receipts schedule for sales and a cash payments schedule for material purchased.

  Compute the variance and standard deviation in monthy rates

Compute the variance and standard deviation in the monthy rates of return for Patch Ltd. Convert the closing price series into holding period rates of return

  Compute submarines eps for the year

Submarine, Corp., earned net income of $110,000 for 2011. Submarine's books include the following figures: Preferred stock, 2%, $30 par, 1,000 shares issued and outstanding   $30,000 Common stock, $1 par, $52,000 issued   $52,000 Paid-in capital in e..

  Prepare an income statement for september - maria gonzalez

Prepare an income statement for September, an owner's equity statement for September, and a balance sheet at September 30.

  What was found to be the scope of rodney nathan authority

What property interest did Dollars & Sense register under the Torrens system and how didit acquire that interest? How did that interest relate to Mrs Nathan? Why do you thinkDollars & Sense registered its interest?

  What is formula for computing activity-based overhead rates

What are the principal differences between activity- based costing (ABC) and traditional product costing? What is the formula for computing activity-based overhead rates?

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