Calculate the contribution to profit from the special order

Assignment Help Managerial Accounting
Reference no: EM132776561

Question - Vernon Company manufactures a personal computer designed for use in schools and markets it under its own label. Vernon has the capacity to produce 28,000 units a year but is currently producing and selling only 17,000 units a year. The computer's normal selling price is $1,800 per unit with no volume discounts. The unit-level costs of the computer's production are $430 for direct materials, $230 for direct labor, and $150 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Vernon during the year are expected to be $2,230,000 and $813,000, respectively. Assume that Vernon receives a special order to produce and sell 3,170 computers at $1,230 each.

Required - Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order?

Reference no: EM132776561

Questions Cloud

What liability balance does the company report at the end : If the effective rate method is used, what liability balance does the company report at the end of Year Two (rounded)
Explain what the attacker did during the breach : In this day and age, data breaches have increased in quantity and intensity. Therefore, it is essential that the security professional assess situations which.
What are the various dimensions of ethical leadership : What are the various dimensions of ethical leadership? Note some failures in ethical leadership, please find an example, explain the failure and note possible.
Explaining to person that gravity is a real force in nature : Imagine someone who believes gravity is not a real force in nature. Using the Unit VI Assignment template, write at least two to four paragraphs explaining.
Calculate the contribution to profit from the special order : Assume that Vernon receives a special order to produce and sell 3,170 computers at $1,230 each. Calculate the contribution to profit from the special order
Describe when some controls cannot be implemented : Describe when some controls cannot be implemented (such as on a personal laptop). Explain what is to be done in each case identified above to compensate.
What is the present value of the expected loss : The 5- year risk free spot rate is 3.125% and risk spread is 1.75%. What is the present value of the expected loss
What will your ending balance be from today : Assuming that you make no additional deposits into or withdrawals from the account, what will your ending balance be 10 years from today
How the given might impact the global economy : Networks have changed drastically over the last 30 years. With the first introduction of the 56k modem, which was about 3 typewriter pages per second.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What is the value of the company current liabilities

If the company has a current assets of P200,000, including inventory of P80,000 and a quick ratio of 2:1, what is the value of the company's current liabilities

  Determine the dealership sales price variance for the month

The budget for the month was to sell 12 cars at an average price of $15,200. Compute the dealership's sales price variance for the month.

  What is the most profitable sales mix for the company

It can produce 6 units of A per hour or 10 unit,Contribution margin per unit is $12 for A and $10 for Z. What is the most profitable sales mix for this company?

  Which budget has more than one level of production

Which budget has more than one level of production included that shows expected revenue and cost? Rolling budget/ Sales budget

  Compute and discuss the percentages of change in the profit

Write a one to two page single-spaced memo to the management of Shaw Company and include/attach your findings and compute and discuss the percentages of change in the profit and cash balance of the company due to the increase in the price.

  How much must dollar sales increase to maintain the profit

If the company's manager is considering increasing his salary by $34,000, how much must dollar sales increase to maintain the company's current profit

  Explain how would you conclusion change for winter months

Explain how would you conclusion change for the winter months, if bad weather makes it likely for traffic jams on the highway to increase to 6 days per month?

  Calculate the new breakeven point in units and sales dollars

J&H Inc. sells two products, Product A. Calculate the new breakeven point in units and sales dollars for each product. Assume the sales mix stays constant.

  Describe the major sources of income and expenditures

Describe the major sources of income and expenditures for households and What percentage of income is paid in taxes at each level?

  Find what is the incremental profit

Sandro Aero Inc., What is the incremental profit? What is the project's expected return next year? Should the firm make the investment?

  Should the company accept the special order and explain

If special order was accepted, the machine would be sold immediately after the order was delivered for $2,000. Should the company accept the special order?

  Prepare journal entries to record the events

Question - Striking Furs imports furs from Canada. In the space provided below, prepare journal entries to record the following events

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