Determining the normal selling price

Assignment Help Accounting Basics

Reference no: EM131007058

A company has the choice of either selling 750 defective units as scrap or rebuilding them. They have already spent $14 per unit making these items. The company could sell the defective units as they are for $8.00 per unit. Alternatively, the company could rebuild the units at an incremental cost of $1.00 per unit. If it rebuilds the units, they will not be able to produce 750 new units with a unit cost of $3.00 and a normal selling price of $15.00 each. What should the company do?

Reference no: EM131007058

Questions Cloud

Company manufacturing cost and other expense data : 1) Fabila Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by customers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Fa..

Accounting rate of return : The company anticipates a yearly net income of $2,850 after taxes of 30%, with the cash flows to be received evenly throughout of each year. What is the accounting rate of return?

Monterey average investment : Monterey uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is Monterey's average investment?

What will be the temperature of the tea after an hour : In one minute the tea cools down to 84Cdegree. What will be the temperature of the tea after an hour? When will the temperature of the tea be 22o?

Determining the normal selling price : If it rebuilds the units, they will not be able to produce 750 new units with a unit cost of $3.00 and a normal selling price of $15.00 each. What should the company do?

Lawn fertilizer called fastgro : Use the following information to answer this question. Cole Laboratories makes and sells a lawn fertilizer called Fastgro. The company has developed standard costs for one bag of Fastgro as follows:

Do these actions constitute systematic errors : Suppose that Joe enjoys and repeatedly does stupid things like getting heavily into debt and insulting police officers. Do these actions constitute systematic errors? If he gets what he wants each time, are his stupid actions even considered to be..

Comparison of the statement with the cash account : On May 31, 2011, James Logan Company had a cash balance per books of $6,602.94. The bank statement from Farmers State Bank on that date showed a balance of $6,375.10. A comparison of the statement with the cash account revealed the following facts..

Calculate the equation for short-run total cost : Assume that a firm operates with the production function Q(K.L)=KL1/2 and assume that the price of labor w=$4 and the rental rate for capital r=$2. without doing any calculations, sketch a representative LTC and LAC curve for this production functi..

User Account

All Pages