How much better or worse off is circus toys

Assignment Help Accounting Basics
Reference no: EM133147089

Question - Circus Toys produces a plastic three-ring circus set. The set sells for $102. The capacity of the plant is 20,000 sets per year. Production costs are as follows for 20,000 sets:


Per unit

Direct materials

$ 10.00

Direct labor

15.00

Variable overhead

20.00

Variable Selling costs

5.00

Fixed overhead

40.00

Total Cost

90.00

A Canadian store, which had previously not purchased from Circus Toys, has approached the marketing manager about buying 6,000 sets for $88/set. No selling expenses would be incurred in this offer, but the Canadian firm wants its store name put on the package, which means an additional $2.50 cost per unit to Circus Toys. Because the company is currently selling 19,000 sets, acceptance of this special order would require it to reject some of its current business.

Required - How much better or worse off is Circus Toys if they accept the special order? Show computations.

Reference no: EM133147089

Questions Cloud

What was the cash flow from operating activities : The firm invested in property, plant, and equipment totaling $250,000 - What was the cash flow from operating activities
Calculate the recognized gain for stacey : Stacey transferred land with an adjusted basis of $255,000. Calculate the recognized gain for Stacey
Compute the relevant cost of debt for this project : The project is expected to increase revenues of the firm by $120 million per year. Compute the relevant cost of debt for this project
Compute illini taxable income and federal income tax : Illini Corporation reported taxable income of $500,000 from operations for this year. Compute Illini taxable income and federal income tax
How much better or worse off is circus toys : Circus Toys produces a plastic three-ring circus set. The set sells for $102. How much better or worse off is Circus Toys
What would be the impact on the business profit : What would be the impact on the business's profit if the plan to provide a discount to large orders were implemented - Which Recommended Freight Type
What is the mark-up as a percent of selling price : A sports store purchased tennis racquets for $77.57 less 35% for purchasing more than 100 items, What is the mark-up as a percent of selling price
Compute the dm quantity variance : Manufacturing has 20 employees. Each employee presently provides 35 hours of productive labor per week. Compute the DM Quantity Variance
What is cougar consulting company gross payroll : Federal Unemployment Tax Assesment (FUTA) rate is 0.9 percent. What is Cougar Consulting Company gross payroll

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.

  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!

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