User Account

All Pages

Discuss mountain goat cycles was operating at capacity

Assignment Help Accounting Basics
Reference no: EM131774888

Mountain Goat Cycles has just received a request from the Seattle Police Department to produce 100 specially modified mountain bikes at $179 each.  Mountain Goat Cycles can easily modify its City Cruiser model to fit the specifications of the Seattle Police Department.  The normal selling price of the City Cruiser bike is $249 and its unit product cost is $182 as shown below:

Direct Materials

$86

Direct Labor

$45

Manufacturing Overhead

$51

Total Unit Product Cost

$182

The variable portion of the above manufacturing overhead is $6 per unit.  The order would have no effect on the company's total fixed manufacturing overhead costs.  The special modifications requested by the Seattle Police Department would require $17 per unit incremental variable costs.  In addition, the company would have to pay a graphics design studio $1,200 to design and cut stencils that would be used for painting the Police Department's logo on the bikes.  Currently, Mountain Goat Cycles is not operating at capacity.

Should Mountain Goat Cycles accept the special order? (support your work with numbers).

Would it make a difference if Mountain Goat Cycles was operating at capacity?

Reference no: EM131774888

Questions Cloud

Find real wage that supports the pareto optimal allocation : In this economy the welfare theorems apply, and hence the Pareto optimal allocation can be supported as a competitive equilibrium.
Discuss what are some possible reasons for the consistency : What are some possible reasons for the consistency in the percentage complete estimates produced by the two production lines
What entry should patriot make to record this transaction : Assuming the par value of the stock was not changed, what entry should Patriot make to record this transaction
Present your work in detail and explain : An individual obtains a car loan which pays $30,000. The loan will be paid off in 3 years, and payments are made monthly. Interest rate on the loan
Discuss mountain goat cycles was operating at capacity : Would it make a difference if Mountain Goat Cycles was operating at capacity
Discuss about the market rate of interest : Consider a firm (Firm X) with some monopoly power that is producing a good that may have positive network effects if a critical mass of consumers.
Prepare the journal entry necessary to record this exchange : Prepare the journal entry(ies) necessary to record this exchange, assuming that the melters exchanged are (a) has commercial substance
Product that a company would manufacture : What exactly do we mean by an "equivalent unit"? Is it the same as an actual unit of some product that a company would manufacture?
Compute the difference in net operating income : Compute the cost per unit, using variable costing. Compute the difference in net operating income between the two methods

Reviews

Write a Review

Accounting Basics Questions & Answers

  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?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd