Calculate the contribution to profit from the special order

Assignment Help Managerial Accounting
Reference no: EM132792220

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

Problem 1: Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order?

Reference no: EM132792220

Questions Cloud

Should old issue be refunded and replaced with a debt issue : Current long-term interest rates on similar bonds 9.000%. Should the old issue be refunded and replaced with a debt issue with a comparable maturity
Quebecor printing business more profitable : Quebecor Printing is a commercial printing company that is expanding, acquiring ailing printing companies, and moving into international markets.
How is marburg hemorrhagic fever prevented : The largest and deadliest outbreak of Marburg hemorrhagic fever on record occurred in 2005. The Ministry of Health (MOH) in Angola reported a total of 374.
Describe two dilemmas that counselor might face : Describe two dilemmas that counselor might face in attempting to plan research with special populations (e.g., seriously mentally ill, children
Calculate the contribution to profit from the special order : Calculate the contribution to profit from the special order. Should Vernon accept or reject the special order? Vernon Company manufactures a personal computer
Compute the value of a share of Smith Brothers : Compute the value of a share of Smith Brothers using both the trailing and forward price earnings multiples valuation
Reflect on the analysis of the sin of suicide : Reflect on the analysis of the sin of suicide and, thus, euthanasia from the topic readings. Do you agree? Why or why not? Refer to the lecture and topic.
Reflect on facilitated training session : Reflect on a facilitated training session you experienced that affected you either positively or negatively.
What are some examples of tests that may lack face validity : What are some examples of tests that may lack face validity?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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