Determine effect on the company total net operating income

Assignment Help Financial Accounting
Reference no: EM132955949

Problem - A customer has asked Does Corporation to supply 6,000 units of product Y19, with some modifications, for $31.30 each. The normal selling price of this product is $46.50 each. The normal unit product cost of product Y19 is computed as follows:

Direct materials $16.40

Direct labor 8.30

Variable manufacturing overhead 4.40

Fixed manufacturing overhead 1.90

Unit product cost $31.00

Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product Y19 that would increase the variable costs by $0.90 per unit and that would require a one-time investment of $2,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order.

Required - Determine the effect on the company's total net operating income of accepting the special order.

Reference no: EM132955949

Questions Cloud

Explaining the various ways time value of money concepts : Demonstrate your understanding of the time value of money by explaining the various ways time value of money concepts
Analysis of financial statements and projections : Based on your research, succinct analysis of each of the following items: for Walt Disney (DIS) need an informational format on how to do this
What would be the financial advantage : Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage
What the yellow bricks ltd zero-coupon bond price : Yellow Bricks Ltd has a 40% probability of going bankrupt. What should be the Yellow Bricks Ltd's 2-year zero-coupon bond price for $100 par value
Determine effect on the company total net operating income : A customer has asked Does Corporation to supply 6,000 units of product Y19, Determine effect on the company total net operating income
What is the beta and cost of equity of titan stock : The bonds will mature in 15 years and are currently priced at $1,100 per bond. What is the beta and cost of equity of Titan's stock
How does the general public view the quality of the company : Please answer the following questions on Lululemon. Use anything you can find on the web or know from personal experience to complete your response.
How to explain the step in budgeting process : How to explain the step in budgeting process?
Discuss related to usage of block chain : Discuss related to usage of block chain and IOT in construction industry Identify threats and opportunities

Reviews

Write a Review

Financial Accounting Questions & Answers

  1nelson framing began march with 73 units of inventory that

1.nelson framing began march with 73 units of inventory that cost 23 each. during the month nelson made the following

  Determine companys weighted average cost of capital

Determine the company's Weighted Average Cost of Capital and determine the NPV of the project - Indicate which depreciation method you have used, and explain why you chose this method.

  Calculate the amortisation expenses for the first four years

It expects to use the patent for the next ten years, after which it will be valueless. Calculate the amortisation expenses for the first four years.

  Analyze accounting situation to apply proper accounting rule

Analyze accounting situations to apply the proper accounting rules and make recommendations to ensure compliance with generally accepted accounting principles.

  Briefly describe the depreciation methods

Briefly describe the depreciation methods based on treating assets as (1) units and (2) a group or as having a composite life.

  Evaluate the firms sustainable growth rate

Calculate and evaluate the firms sustainable growth rate (SGR) for the last 2-3 years and what are the consequences faced by firms that grow at a rate that is not consistent with their sustainable rate?

  Determine the terminal value of the project is

Determine The terminal value of the project is. Gross proceeds from disposal of project assets: $200000. Cost of dismantling project asset: $20000.

  What accounting constraint is illustrated by the items

What accounting constraint is illustrated by the items Greco's Farms, Inc. reports agricultural crops on its balance sheet at fair value.

  Discuss unique tax implications of stock bonus plans

Discuss when an employer might want to establish a target benefit plan or a profit-sharing plan rather than a money purchase plan.

  What is credited for the excess of the reissue price

Under the cost method of accounting for treasury shares, what is credited for the excess of the reissue price over the cost of treasury shares

  Record the necessary closing entries

Record the necessary closing entries. The year-end adjusted trial balance of Aggies Corporation included the following account balance

  Make income statement and retained earnings statement

Make income statement  and retained earnings statement and balance sheet  and calculate certain ratios required by the image file details.

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