Information for a unit of its most popular product

Assignment Help Financial Accounting

Reference no: EM131212789

The Buchanan Company has gathered the following information for a unit of its most popular product:

Direct materials $ 13.60

Direct labor 7.60 Overhead (40% variable)

11.60 Cost of manufacture 32.80 Desired markup 16.40

Target selling price $ 49.20 The above cost information is based on 4,000 units.

A distributor has offered to buy 3,600 units at a price of $37.60 per unit. The distributor claims this special order would not disturb regular sales at $49.20. Special packaging and other selling expenses would be an additional $2.10 per unit for the special order. How many units of regular sales could be lost before this contract is not profitable? (Round your final answer to the nearest whole unit.)

3,600 units.

1,812 units.

1,489 units.

4,000 units.

Reference no: EM131212789

Questions Cloud

Discuss the comparative forms of doing business : Conducting their business as a C corporation, an S corporation, or an LLC would meet Bill and George’s objectives of having limited liability. From a tax perspective, both the S corporations and the LLC would allow the losses in the early years to be..

Prepare schedule to show the differential costs per cookie : Mel's Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mel's kitchen and adjoining meeting room operate at 70 percent of capacity. Mel's purchases the cookies for $1.16 each but is considering ma..

Calculate the total relevant cost : Freeman Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Calculate the total relevant cost. Should Freeman continue to make the contai..

Calculate the simple linear regression equation : A trend forecast equation is being developed to describe sales over time. The analyst has completed the tabulation using the raw data and is about to develop the forecast equation with the least squares equations. Use the calculated trend information..

Information for a unit of its most popular product : The Buchanan Company has gathered the following information for a unit of its most popular product: Special packaging and other selling expenses would be an additional $2.10 per unit for the special order. How many units of regular sales could be los..

File income tax returns on consolidated basis : Senior, Ltd., acquires all of the stock of JuniorCo for $30 million at the beginning of year 1. The group immediately elects to file income tax returns on a consolidated basis. Senior’s operations generate a $50 million profit every year. In year 2, ..

Why do the migrants gain only areas e and f : Why do the migrants gain only areas e and f ? - Why don't they each gain the full southern wage markup ($3.20 - $2.00)? Why don't they each gain ($5.00 - $2.00)?

What impact does the purchasing and selling goods : ACC5218 Auditing Practice - What impact does the purchasing and selling goods over the internet (both locally and internationally) have on business operations and What are the risks businesses face due to purchasing and selling goods over the inter..

Effect of a decrease in the annualized cost of migration : Consider the labor-market effects of migration shown in given Figure .- What is the effect of a decrease in the annualized cost of migration (a decrease in c ) on each group?

User Account

All Pages