Solution-How much will its profit increase this year

How much will its profit increase this year

Assignment Help Managerial Accounting

Reference no: EM132799094

Question - Pastry Shop X produces premium vanilla cakes for the Toronto hospitality industry. It has a production capacity of 26,000 Cakes per year and currently it uses 75% of its production capacity and sells everything it produces. The Ottawa Hotel Association sent him a voucher for a special order of 6,000 chocolate cakes for this year alone. Either the data:

Vanilla cake selling price: $35

Price offered for chocolate cakes: $22

Variable cost of manufacture: $13.50

Fixed administration fee: $4.40

Variable Selling Fee: $3.50

Cost of chocolate: $2.50

The recipe for both cakes is the same except for substituting vanilla for chocolate. Selling costs are not incurred, as it was the potential customer who approached the pastry shop.

If the pastry shop accepts the order, how much will its profit increase this year?

Reference no: EM132799094

Questions Cloud

Pros and cons of developing curriculum collaboratively : In higher education, having each faculty member develop their own syllabus alone is a practice of the past. Now, faculty are expected to collaborate.

Calculate the depreciation expense : Estimated useful life of the equipment is 8 years; and 110,000 units of production; Calculate the depreciation expense

How viable is sugata mitras idea : View the TED talk by Sugata Mitra and respond to the following: Given all you have learned this semester. How viable is Sugata Mitra's idea?

How will you use these ideas moving forward in the course : Listen to the Podcast by Malcom Gladwell, titled, "Miss Buchanan's Period Of Adjustment". Listen to it very carefully. When you are finished.

How much will its profit increase this year : The recipe for both cakes is the same except for substituting vanilla for chocolate. If the pastry shop accepts the order, how much will its profit increase

How do behaviorists understand the nature of learning : How do behaviorists understand the nature of learning? In the three video clips, three method are illustrated which a professor of English phonetics uses.

How you would implement the model or strategy : Instructional models apply learning theories to the selection of instructional strategies in a manner that will improve planning and differentiation to aid.

International corporate employment policy : Could you help create an International Corporate Employment Policy on Employee Working hours. Include an explanation of the additional steps needed before actua

What is the cost of equity for the new project : What is the cost of equity for the new project? Calculate the Net Present Value (NPV) if the company decided to buy new machine

User Account

All Pages

How much will its profit increase this year

Reference no: EM132799094

Reference no: EM132799094

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Difference between functional based costing and activity

What is total budgeted sales and production for the quarter

Discuss the differences between debt and equity financing

What was the direct labor rate variance for the month

How much would the company benefit by outsourcing

Perform a corporate capabilities analysis

Compute the budgeted cost of goods sold for the next week

Why are top management support and cross-functional

Identify each transaction by number

Find what percentage growth in current assets is required

How many minutes of mixing machine time would be required

January purchases and sales data for its only product

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT