Prepare schedule reflecting an incremental analysis

Assignment Help Managerial Accounting
Reference no: EM132789146

Question - Paulsen Company produced and sold 8,000 units of product and is operating at 80% of plant capacity. Unit information about its product is as follows:

Sales Price $35

Variable manufacturing cost $16

Fixed manufacturing cost ($48,000 ÷ 8,000) 6 22

Profit per unit $13

The company received a proposal from a foreign company to buy 1,000 units of Paulsen Company's product for $20 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Paulsen Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order. All fixed costs are allocated to individual products.

Prepare schedule reflecting an incremental analysis of this proposal. Indicate the effect the acceptance of this order might have on the company's income.

Reference no: EM132789146

Questions Cloud

What is the compensation expense : On grant date, the entity estimates that the fair value of the share options, with an exercise price of P20, What is the compensation expense
Specific manufacturing production planning utilities : Should the company use an ERP package or specific manufacturing production planning utilities?
Plan an outline of a healthcare clinic : Plan an outline of a healthcare clinic that addresses at least two trends in consumer needs and factors that drive consumer demands for healthcare
Important components of effective communication : You will consider one of the more important components of effective communication: determining your target audience.
Prepare schedule reflecting an incremental analysis : Prepare schedule reflecting an incremental analysis of this proposal. Indicate the effect the acceptance of this order might have on the company's income
What is experience with the umuc career services : Identify role that political, cultural, social, legal and economic variables play in the development and practice of accounting in an international environment
What time does the shipment arrive in san francisco : Air Canada has a connecting flight via Detroit, with 1 hour stop over. The first leg of the flight is 3 ¾ hour and the second 3 ½ hours.
Accountability of a manager for better results : Describe suggestions to increase the accountability of a manager for better results.
What the correct entry to be recorded on August : The dividend is to be paid on August 15, 2022, to shareholders of record on July 31, 2022. What the correct entry to be recorded on August

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