Compute the incremental income from accepting the order

Assignment Help Accounting Basics
Reference no: EM132538657

Question - A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10000 units:

Direct materials $4

Direct labor 10

Variable overhead 8

Fixed overhead 6

A foreign company wants to purchase 2100 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4000 in order to stamp the foreign company's name on the product. Compute the incremental income (loss) from accepting the order?

Reference no: EM132538657

Questions Cloud

Netflix internal strengths and weaknesses : As you read, pay close attention to Netflix's strategy, What are Netflix's internal strengths and weaknesses? Who are Netflix's competitors?
What is portfolio beta-two investments : An individual has $45,000 invested in a stock with a beta of 0.4 and another $75,000 invested in a stock with a beta of 1.7.
How the knowledge obtained through meeting objectives : Provide a reflection of at least 500 words (or 2 pages double spaced) of how the knowledge, skills, or theories of this course have been applied.
Evaluate the performance of the subsidies : Some of the methods to evaluate the performance of the subsidies by the parent company are the following, with the exception of
Compute the incremental income from accepting the order : A foreign company wants to purchase 2100 units at a special unit price of $25. Compute the incremental income (loss) from accepting the order
Simulate a zero-span circuit : Design a suitable Printed Circuit Board - Review your notes on the purpose and design of zero-span circuits - Design a suitable Printed Circuit Board
Principal and interest components of the balance : The balance after 10 months, including interest, on a loan at 9.6% is $17,280.00. What are the principal and interest components of the balance?
What difference between bank loans and bank overdrafts : What difference between bank loans and bank overdrafts? Cash movements related to interest, dividends and income taxes must be reported
Limitations involved in estimating the value of firm : Once you estimate the value of the firm, how can you use this information to determine whether to invest in it? What are some limitations involved

Reviews

Write a Review

Accounting Basics Questions & Answers

  Explain how each of the events would affect the accounting

Explain how each of the events would affect the accounting equation by writing the letter I for increase, the letter D for decrease, and NA for does not affect under each of the components of the accounting equation.

  Find predetermined overhead rate based on direct labor hours

Jordan Corporation estimated its overhead costs would be $23,400 per month except for January when it pays the $150,840 annual insurance premium.

  Discuss what role can management accountants play

What role can management accountants play in preventing and detecting fraudulent activities and other illegal activities

  Post journal entries to the general ledger accounts

Prepare a PowerPoint presentation analyzing the company's financial performance for the month of January - Prepare an unadjusted trial balance

  Personal or business context

Relationships take time, and if you want them to succeed in a personal or business context, you have to make them a priority.

  Determine the net present value of the investment

What is the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine

  Recognize more or less revenue under ifrs

If a company has numerous long term construction contracts for which it cannot reliably estimate the costs to complete,

  For a financial statement of year 2006 sale was 400000 and

for a financial statement of year 2006 sale was 400000 and a identified loss of 40000. again for year 2007 sale was

  Your answers may differ from those offered below due to

ire corporation uses the weighted-average method in its process costing system. data concerning the first processing

  Compute the times interest earned for weltin company

Cather Corporation has made and recorded its quarterly income tax payments. After a final review of taxes for the year, the company identifies an additional.

  The income tax rate is 40 for all years prepare the journal

abc company had the following net operating income or losses over a 5-year period2010 250002011

  Coimpute the balance in the deferred gross profit

Karr Co. began operations on January 1, 1988, and appropriately uses the installment method of accounting. The balance in the deferred gross profit account

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