Determine what will be effect on profit of accepting order

Assignment Help Managerial Accounting
Reference no: EM132640199

Bellevue produces a hard disk drive that sells for $174 per unit. The cost of producing 25,000 drives in the prior year was:

Direct material $725,000
Direct labor 475,000
Variable overhead 225,000
Fixed overhead 1,475,000
Total cost $2,900,000

At the start of the current year, the company received an order for 3,040 drives from a computer company in China. Management of Bellevue has mixed feelings about the order. On one hand, they welcome the order because they currently have excess capacity. Also, this is the company's first international order. On the other hand, the company in China is willing to pay only $132 per unit.

Problem 1: What will be the effect on profit of accepting the order? (Enter decrease in profit using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Reference no: EM132640199

Questions Cloud

Compute the current yield and capital gains : Quiver Archery's bond currently is selling for $1,006; its value one year ago was $996. The bond has a $1,000 maturity value
How do find the dollar amount of the total depreciation : Determine the dollar amount of the total depreciation that will be contained in Cost of Goods Sold. Depreciation for the year amounted to $160,000: 30%.
Fair price for one of? cyberdyne zero coupon? bonds : The yield on the bond is 6?%. What is the fair price for one of? Cyberdyne's zero coupon? bonds?
What is the master-budget fixed manufacturing overhead : What is the master-budget fixed manufacturing overhead rate per wrench? What is the theoretical fixed manufacturing overhead rate per wrench?
Determine what will be effect on profit of accepting order : Compute What will be the effect on profit of accepting the order? (Enter decrease in profit using either a negative sign preceding the number e.g. -45)
What is the incremental net revenue : What is the incremental net revenue (i.e. change in revenue minus expenses) that will result from accepting this project?
Making decisions about accounts receivable : What factors must a financial manager consider when making decisions about accounts receivable?
Make an income statement that more accurately re?ects : Prepare an income statement that more accurately re?ects the division's profit performance. (Note: you may first construct it using all costs separated)
List some of the working capital management practices : List some of the working capital management practices you would expect to see in manufacturing company following just in time inventory practices.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How many kilos of materials will company need to purchase

279800 units during the 2019-2020 fiscal year, how many kilos of materials will the company need to purchase for its production during the year?

  What is hanson direct-material quantity variance

What is Hanson's direct-material quantity variance (MQV) for the week? Calculate Hanson's direct-material price variance (MPV) for the week.

  Identify the steps in the budgeting process

Identify the steps in the budgeting process. Compare actual results to budgeted amounts and analyze any differences./Take corrective action as needed.

  Prepare operating budgets as monthly direct materials budget

Prepare Operating Budgets as Monthly Direct Materials Budget for the quarter ending June and Monthly Production Budget for the quarter ending June

  Compute a predetermined overhead rate for the plant

Compute a predetermined overhead rate for the plant as a whole based on machine hours. Round your answer to two decimal places.

  How do compute the accounts receivable as of that date

How do Compute the accounts receivable as of that date. Assume that the company will need a budgeted balance sheet as of June 30.

  Find a manufacturing companys annual report

Explain your analysis of the firm, and make recommendations for improvement - Find a manufacturing company's annual report

  How do compute companywide break-even point in dollar sales

Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole dollar amount.)

  How outlet should continue to be? operated

How would you decide whether this outlet should continue to be? operated, sold as a going? concern, or demolished and the land? sold?

  Discuss usefulness and limitations of break-even analysis

Apply this analysis to internet shopping such as eBay and consider whether such companies are profitable as a result. Discuss usefulness of break-even analysis

  How the term budget slack refers to the

How the term "budget slack" refers to the? Extended lead time between the preparation of the functional budgets and the master budget.

  How many equivalent units in process for conversion

How many equivalent units in process for conversion were there in December using the weighted average method?The information is available

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