Calculate the price per unit at which the special order

Assignment Help Accounting Basics
Reference no: EM13510153

Wagner Company sells Product A for $21 per unit. If Wagner operates at full production capacity of 200,000 units, its manufacturing cost per

unit are as follows:

Direct materials $4.00

Direct labor 5.00

Overhead, 2/3 of which is fixed 6.00

Total $15.00

A special order for 20,000 units was received from a foreign distributor. The foreign distributor offered $14.50 per unit. The only selling costs on this order would be $3.00 per unit for shipping. Wagner has sufficient capacity to manufacture the additional units. Fixed overhead costs would not be affected if the special order is accepted.

Required: (1) Compute the gain or loss if the customers offer is accepted. (2) Calculate the price per unit at which the special order would generate a $20,000 profit before taxes.

Reference no: EM13510153

Questions Cloud

Negotiation and culture : Negotiation and Culture
Compute how far short of the target should it drop package : A plane drops a package of food to stranded caribou on an ice flow in the Arctic circle. How far short of the target should it drop the package
Calculate christie cash conversion cycle : Calculate Christie cash conversion cycle
What is the stopping distance in meters : A car is traveling at 67.53 mph. The driver applies the brakes and the car decelerates at 5.68 m/s2. What is the stopping distance in meters
Calculate the price per unit at which the special order : (1) Compute the gain or loss if the customers offer is accepted. (2) Calculate the price per unit at which the special order would generate a $20,000 profit before taxes.
What is the maximum height reached in meters : A ball is launched straight up with a speed of 25.27 miles per hour. What is the maximum height reached in meters
Negative view of military rule : Why do most political sciences have a negative view of military rule in the LDCs? Under what circumstances, if any, might military government be a good thing for the country? Please cite references in APA format.
Calculate the final charge on each object : Four identical metallic objects carry the following charges: +1.79, +6.21, -4.16, and -9.41C. The objects are brought simultaneously into contact, What is the final charge on each object
Identify any breach committed by the auditors : Identify any breach committed by the Auditors under the Corporations Act 2001 and APES 110- Code of Ethics for Professional Accountants - use analytical procedures to support your financial statement analysis and identify which were the major fac..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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