User Account

All Pages

Prepare an analysis for the president

Assignment Help Accounting Basics
Reference no: EM131589038

Question - On November 15, 2010, The Cooper Co. received a special order for 6,000 three-wood golf club sets. These golf clubs will be marketed in Asia. Seto Imports, Inc., the purchasing company, wants the clubs bulk packaged and is willing to pay $72 per set for the clubs. The president of The Cooper Co. has gathered the following product costing information about the set of woods being discussed: direct materials (wood), $900 per 100 sets; direct materials (metal shafts), $1,200 per 100 sets; and direct materials (grips), $200 per 100 sets. Direct labor is $27 per set. Variable manufacturing costs are $19 per set, and fixed manufacturing costs are 20 percent of direct labor dollars. Variable selling expenses are $14 per set, and variable shipping costs are $9 per set. Fixed general and administrative costs are figured at 30 percent of direct labor dollars. Bulk shipping costs will total $10,000, thus eliminating both variable selling and variable shipping costs from consideration. The company did not expect this order and will reach planned production capacity for the year. However, there is enough plant capacity for the special order. (Round answers to two decimal places).

a. Prepare an analysis for the president to use in deciding whether to accept or reject the offer by Seto Imports, Inc. What decision should be made?

b. What is the lowest possible price The Cooper Co. could charge per set of woods and still make a $12,000 profit on this order?

Reference no: EM131589038

Questions Cloud

Transaction costs in economy : Explain how the use of money as a unit of account can help reduce transaction costs in this economy.
Explain the importance of situating a societys cultural : Evaluate how successful the author was in convincing you to accept the validity of the "surprise ending" that was different from what you expected.
Explain two major political risks of operating a business : From the e-Activity, analyze two major political risks of operating a business within the selected emerging country.
Economies from population growth : What are the important factors distinguishing these two economies from population growth, human capital, political systems etc. What the future holds?
Prepare an analysis for the president : Prepare an analysis for the president to use in deciding whether to accept or reject the offer by Seto Imports, Inc. What decision should be made
Give a brief account of the reading assigned : What did you read? What sort of book is it? Give a brief account of the reading assigned.
Develop recommendations to avoid such communication problems : Develop recommendations to avoid such communication problems. Support recommendations with specific, current research related to cross-cultural communication.
Calculate the amount of each of the annual receipts : Nadine Love invests in a $60,000 annuity at 12% compounded annually starting today. Calculate the amount of each of the 15 equal annual receipts
What elements in the companys culture : What elements in the company's culture, external environment, or other factor influenced the ethical crisis? If it was portrayed in media, how was it portrayed?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the total dividends and the per-share

Da Show Inc. owns and operates movie theaters throughout Texas and California. Da Show has declared the following annual dividends over a six-year period: 2003, $18,000; 2004, $54,000; 2005, $70,000; 2006, $75,000; 2007, $80,000; and 2008, $90,000..

  Activity-based costing to compute product margins

Stroth Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and Other.

  Substantial profit on the sale

David has now discovered that Caroline has made a substantial profit on the sale of her house and is about to depart on a round-the-world holiday.

  Do the general management philosophy and accounting

the top management of general electronics inc. is well known for managing by the numbers. with an eye on the companys

  A company has a standard cost system in which fixed and

a company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products

  Calculate the derivative with respect to x

For the expression ln(x2 + y2) = x7 + 8, calculate the derivative with respect to x. Calculate (dP/dT) assuming that pi = 2 x 10-5 and E = 9 megatons.

  Before-tax required rate of return

Assume that the before-tax required rate of return for Deer Valley is 14%. Compute the before-tax NPV of the new lift and advise the managers of Deer Valley about whether adding the lift will be a profitable investment. Show calculations to suppor..

  Comet company began operations in 2010 and adopted the fifo

comet company began operations in 2010 and adopted the fifo method of inventory pricing. during 2012 comet company

  What is the journal entry to record the sale of the shares

Penne Pharmaceuticals sold 8 million shares of its $1 par common stock to provide funds for research and development. If the issue price is $12 per share, what is the journal entry to record the sale of the shares?

  Currencies on the foreign exchange markets

Discuss the effects that a drop in value of the U.S. dollar in relation to other currencies on the foreign exchange markets has on:

  Prepare chao end-of-period adjustment

discuss about prepare Chao's end-of-period adjustment for estimated uncollectible accounts. Also prepare the entry that would have been made had the credit balance instead been a debit balance

  Calculate p and js adjusted gross income

P and J are a married couple with the following items of income for 2014: Calculate P and J's 2014 Adjusted Gross Income (AGI) as well as their taxable income

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