How much is their incremental profit or loss

Assignment Help Accounting Basics
Reference no: EM131968934

Question - La Jolla Surf boards is making a decision on whether to add long boards as a new product line to complement its short boards. A recent analysis determined that the average long board can be sold for $300.00 with unit variable costs of $225. Fixed costs are currently $51,000 per month but would be increased to $69000 if long boards are added. How much is their incremental profit or (loss) if long boards are added and its sales volume is expected to be 250?

Reference no: EM131968934

Questions Cloud

Finding the company cost of preferred stock : Duggins Veterinary Supplies can issue perpetual preferred stock at a price of $64.00 per share with an annual dividend of $6.00 a share.
Identify an example of different parties involved in selling : Identify an example of two different parties involved in selling a similar product. How does the market efficiency ultimately determine the price?
Main types of financing for businesses : Which of the following are not one of the three main types of financing for businesses?
How might a partisan press sway public opinion : How might a partisan press sway public opinion in an election? Do you believe media's coverage of politics is completely without bias? Why or why not?
How much is their incremental profit or loss : How much is their incremental profit or (loss) if long boards are added and its sales volume is expected to be 250
Post all three entries to the interest payable account : Post all three entries to the Interest Payable account. You do not need to calculate the balance of the account at the end of each month.
How can we use duration in the management of a portfolio : What is duration? How can we use duration in the management of a portfolio of fixed-income securities? What types of bonds are more sensitive to interest rate.
Inadequate to pay the damages : Follis declares bankruptcy, and the firm's assets are inadequate to pay the damages. Graham says she is liable for only $20,000 of the obligation
What are the three most important attributes of organization : What are the three most important attributes of successful organizations? Why? Is it more likely for an organization to display these attribute in an oligopoly.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the cost amounts for the boxes

The following chart shows how costs flow through a business as a product is manufactured. Some boxes in the flowchart show cost amounts.

  What is the amount of depreciation expense

Assuming the straight-line method of depreciation, what is the amount of depreciation expense that needs to be recorded at the end of the first year

  Compute the interest for the notes

(1) Compute the interest for the following notes and assume at 360 day year for all quizzes, homework, etc.

  Management to maximize shareholder wealth

If a company's board of directors wants management to maximize shareholder wealth, should the CEO's compensation be set as a fixed dollar amount, or should the compensation depend on how well the firm performs?

  What could have been done to produce more favorable numbers

What could have been done to produce more favorable numbers? Study the last tab of your assignment spreadsheet and complete a flexible budget on the tab.

  Moore corporation follows a policy of a 10 depreciation

moore corporation follows a policy of a 10 depreciation charge per year on all machinery and a 5 depreciation charge

  Compute the accounts receivable turnover at year end

Compute the accounts receivable turnover at year end. Compute days sales in receivables at year end

  What are the issues related to reporting operating income

1. what are the issues related to reporting operating income? consider contributions and bequests gifts investment

  What are the total prevention costs

Problem: Three Dog Bite Company. Warranty claims $ 170,000 Product liability lawsuits 200,000 Rework costs 600,000 Quality training 505,000.

  Wolverine inc began operations on january 1 of the current

wolverine inc. began operations on january 1 of the current year with a 12400 cash balance. 45 of sales are collected

  Write a memo to the international accounting standards board

Write a brief memo to the International Accounting Standards Board (IASB) that will convince the board to adopt the tax method that provides the greatest tax benefit to corporations.

  The balance in prepaid insurance is a one-year premium paid

The balance in prepaid insurance is a one-year premium paid on June 1

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