Prepare an incremental analysis for the special order

Assignment Help Managerial Accounting
Reference no: EM133075707

Question - Larkin Company produces golf discs which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 golf discs is:

Materials $10,000

Labor 30,000

Variable overhead 20,000

Fixed overhead 40,000

Total $100,000

Larkin also incurs 5% sales commission ($0.30) on each disc sold.

Rudd Corporation offers Larkin $4.25 per disc for 3,000 discs. Rudd would sell the discs under its own brand name in foreign markets not yet served by Larkin. If Larkin accepts the offer, its fixed overhead will increase from $40,000 to $43,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order.

Required -

1. Prepare an incremental analysis for the special order.

2. Should Larkin accept the special order?

Reference no: EM133075707

Questions Cloud

How much will Bob insurance pay for this loss : Bob has a major medical policy with a $500,000 lifetime aggregate limit, a $500 annual deductible. How much will Bob insurance pay for this loss
What is taxable income and tax liability in each scenario : In 2021, Lee borrowed $5 million to gamble and lost it all. He was unable to pay it back in full, What is taxable income and tax liability in each scenario
Team projected financial performances : The sensitivity analysis used the 2019-2023 pro forma income statement as a baseline for the team's projected financial performances.
How much will you pay for the company stock : 1) Woods Inc. has 3,669 fully-diluted shares outstanding trading at $73.54 per share, 466 preferred shares outstanding trading at $95.32 per share, 121 bonds ou
Prepare an incremental analysis for the special order : Rudd would sell the discs under its own brand name in foreign markets not yet served by Larkin. Prepare an incremental analysis for the special order
Gain institutional review board approval and final approval : Discuss what approach and steps you would take or emphasize to ensure that you gain institutional review board approval and final approval to conduct research
What are the market prices of at-the-money : Consider a stock which is currently selling at $4.5. The stock price will either go up to $5 + x with probability 0.5 or go down to $5 - x with probability 0.5
Design a short self-completion questionnaire : Conduct a small-scale pilot of the existing questions and explain whether or not you would modify them in the light of that experience
Describe the specific data elements : Describe the specific data elements from your bond selection process and analysis on how you selected your bonds for your portfolio Explain how some of these fo

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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