Curtis cap company manufactures and sells ball caps with a

Assignment Help Accounting Basics
Reference no: EM13611963

Curtis Cap Company manufactures and sells ball caps with a special logo on the back of the cap that it has copyrighted. Curtis sells its caps through many retail outlets and it has a set price of $21.00. Recently, the National Football League (NFL) has approached Curtis with an offer to purchase 10,000 caps for $170,000 for this year's NFL Superbowl . The NFL caps require the use of NFL's own logo and will cause Curtis to purchase a special machine and set-up costing $10,000 with no apparent future use or value (the machine imprints the 2011 championship winning team logo). Curtis cost structure for the production of its caps is as follows: Direct material: $7.00 Direct labor:....$2.00 Manufacturing Overhead: $8.00 In addition to the costs above, the special logo application will cost $2.00 per cap. Due to the fact that the an existing contract negotiation with Capital Caps Inc (a fierce competitor of Curtis Cap) has forced the NFL to cancel that deal, the NFL has requested expedited delivery costing another $1.00 per cap. While most of the Manufacturing Overhead is fixed, Variable Overhead is estimated at $3.00 per cap. It is expected that this order can be fulfilled within the existing capacity of Curtis Cap Company and will not affect existing sales.

Required: What will be the affect on income if Curtis accepts this order? Based on your answer of income, should Curtis accept the order?

Reference no: EM13611963

Questions Cloud

While chopping down his fathers cheery tree george : while chopping down his fathers cheery tree george discovered that if he swung the axe initially at rest with a speed
A driver of a car is repeatedy driving around a roundabout : a driver of a car is repeatedy driving around a roundabout with a diameter of 100feet . the driver is traveling around
If the coefficient of static friction between the box and : a 2.0 kg box rests on a plank that is inclined at an angle of 65deg above the horizontal. the upper end of the box is
A step up transformer is connected to a generator that is : a step up transformer is connected to a generator that is delivering 141 v and 110 a. the ratio of the turns on the
Curtis cap company manufactures and sells ball caps with a : curtis cap company manufactures and sells ball caps with a special logo on the back of the cap that it has copyrighted.
Find the tension in each of the two ropes supporting a : find the tension in each of the two ropes supporting a hammock if the first one is at an angle of 20.9deg above the
Assume that on jan 1 2013 sosa enterprises paid 3000000 for : assume that on jan 1 2013 sosa enterprises paid 3000000 for its investment in 36000 shares of orioles co. further
A grating with 396 linesmm is illuminated with light of : a grating with 396 linesmm is illuminated with light of wavelength 343 nm. what is the angular separation between the
Delta company produces a single product the cost of : delta company produces a single product. the cost of producing and selling a single unit of this product at the

Reviews

Write a Review

Accounting Basics Questions & Answers

  How do the provisions of gaap in this area differ from the

the following two items appeared on the internet concerning the gaap requirement to expense stock options. washington

  Standard direct labor rate per hour

For the month of April, actual direct labor hours amounted to 2,000. In April, Thorp's standard direct labor rate per hour was:

  Merchandise costing 2400 was sold for 4000 to rd mince on

1. the following information will be used for all 5 of the following computational questions. in reviewing the books

  Dobbs corporation is considering purchasing a new delivery

dobbs corporation is considering purchasing a new delivery truck. the truck has many advantages over the companys

  Legal debt margin for southside city

The State limits the amount of general obligation debt that can be issued by a City to 20% of the assessed value of its taxable property. The assessed value of property in Southside City is $500 million. The legal debt margin for Southside City is

  On january 2 2009 the deadra band acquires sound equipment

on january 2 2009 the deadra band acquires sound equipment for concert performances at a cost of 32500. the band

  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?

  Module 10 assignment true note audio company manufactures

module 10 assignment true note audio company manufactures two models of speakers dl and xl. true note posted the

  A company issues 7 20-year bonds with a par value of

a company issues 7 20-year bonds with a par value of 1100000. the current market rate is 7. the amount of interest owed

  Determining appropriate product costs is essential to

determining appropriate product costs is essential to reporting a reliable inventory valuation. fraud examiners have

  Show how the 3000000 of short-term debt should be presented

on december 31 2014 hernandez company had 3000000 of short-term debt in the form of notes payable due february 2 2015.

  Marriage penalty or benefit

On their joint tax return, their taxable income is $100,000. How much of a marriage penalty or benefit will Maria and Tony experience in 2010?

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