Prepare an incremental analysis for the special order

Assignment Help Accounting Basics
Reference no: EM133155283

Question - The Caldwell Company manufactures cappuccino makers. For the first eight months of 2017 the company reported the following operating results while operating at 80% of plant capacity:

Sales (500,000 units) $75,000,000

Cost of goods sold 45,000,000

Gross profit 30,000,000

Operating expenses 24,000,000

Net income $6,000,000

An analysis of costs and expenses reveals that variable cost of goods sold is $80 per unit and variable operating expenses are $30 per unit In September, Caldwell Company receives a special order for 25,000 machines at $120 each from a major coffee shop franchise. Acceptance of the order would result in $10,000 of shipping costs but no increase in fixed expenses.

Required -

a) Prepare an incremental analysis for the special order.

b) Should Caldwell Company accept the special order? Justify your answer.

Reference no: EM133155283

Questions Cloud

Criminal sentencing embraces number of philosophies : Criminal sentencing embraces a number of philosophies and seeks to satisfy sometimes conflicting goals: retribution, incapacitation, deterrence, rehabilitation
What were the terms of the loans : Identify two countries, one in Africa and one in either Asia or Latin America. Research each country's history with the IMF and the World Bank.
Describe how likely is it for an entrepreneur to enter india : Describe how likely is it for an entrepreneur to enter India market considering the current legal system. Justify your answer
Applying health promotion approaches : Applying health promotion approaches - Mental Health Among Nurses During And After COVID-19 Pandemic in India-A Sysemic Review
Prepare an incremental analysis for the special order : Caldwell Company receives a special order for 25,000 machines at $120 each. Prepare an incremental analysis for the special order
Child molesters and pedophiles up forever : Does this mean that we should lock the child molesters and pedophiles up forever?
Characteristics of a good leader : Based on your knowledge of the leadership skills needed in the long-term care industry, assess your own leadership skills.
Multiple hr systems lead to ineffectiveness : If a human resource process works well in a company's home country, that process should be implemented in all foreign operations. Underneath it all, people are
Review the charles whitman case : If Charles Whitman had faced prosecution, how would you, as a forensic psychology professional expert witness for either the prosecution

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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