Co manufactures and sells medals for winners of athletic

Assignment Help Accounting Basics

Reference no: EM13608885

Biello Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 15,000 medals each month; current monthly production is 14,250 medals. The company normally charges $115 per medal. Cost data for the current level of production are shown below:

Variable costs:
Direct materials 969,000
Direct labor 270,750
Selling and administrative 27,075
Fixed Costs:
Manufacturing 350,550
Selling and administrative 89,775

The company has just received a special one-time order for 600 medals at $102 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs.

Required: Should the company accept this special order? Why?

Reference no: EM13608885

Questions Cloud

Verdugo corporation is considering three long-term capital : verdugo corporation is considering three long-term capital investment proposals. relevant data on each project are as

An electron experiences the greatest force as it travels 17 : an electron experiences the greatest force as it travels 1.7 106 ms in a magnetic field when it is moving southward.

Determine the range of values of h for which the roller : a roller coaster starts from rest at a rolls down the track to b describes a circular loop of 40-ft diameter and moves

Suppose we roll one die repeatedly and let ni be the : suppose we roll one die repeatedly and let ni be the number of the roll on which i first appears. find the joint

Co manufactures and sells medals for winners of athletic : biello co. manufactures and sells medals for winners of athletic and other events. its manufacturing plant has the

Selected information from doodle companys for 2010 is below : selected information from doodle companys for 2010 is below in millions inventory decreased 6.0 accounts payable

An interaction effect that is not significant indicates : an interaction effect that is not significant indicates thata. the influence of one factor is not the same for each

An examination of customers accounts shows that accounts : an examination of customers accounts shows that accounts totaling 675 should be written off as uncollectible. using an

On october 10 2010 printfast company sells a commercial : on october 10 2010 printfast company sells a commercial printer for 2350 with a one year warranty that covers parts.

User Account

All Pages