Should jill company accept the special order

Assignment Help Financial Accounting
Reference no: EM132561279

Jill's Company has been approached by a new customer with an offer to purchase 6,000 units of your product at a price of $11 per unit. Your existing sales will not be affected by this special order. Jill's Company normally produce 40,000 units but plan to produce and sell 30,000 in the coming year. The normal sales price is $18 per unit.

Unit cost information is as follows:

Direct materials $4.00

Direct labor $2.75

Variable overhead $1.50

Fixed overhead $3.25

Total $11.50

If Jill's Company accepts this special order, its fixed manufacturing activities will not be affected.

Question 1. By how much will profit increase or decrease if the special order is accepted?

Question 2. Should Jill's Company accept this special order? Explain why and show your calculations.

Reference no: EM132561279

Questions Cloud

Purpose of including the 2 light setups : What was the purpose of including the 2 light setups? In snails and elodea experiment
Calculate the breakeven point and show in the graph : Calculate the breakeven point and show in the graph clearly the sales: Total revenue line, Total cost. Extradint Company sells its single product
Find out the expected efs under both financing options : Find out the expected efs under both financing options at the given ebit levels of rs 2crores and rs 7.5 crores what should be choice of the company
Why do you have better two-point discrimination : Why do you have better two-point discrimination in your fingertips than on your back?
Should jill company accept the special order : Should Jill's Company accept this special order? Explain why and show your calculations. By how much will profit increase or decrease?
Find direct materials budget : Find Direct materials budget and Production budget and Direct labour budget. Musicova Pty Ltd produces a single product which uses one direct material.
Security architecture and design : System architecture is the descriptive representation of the system's component functions and the communication flows between those components.
European Medieval Art : Identify the Medium and technique used. What are the characteristics of the Medieval period found in your example?
Find and calculate the total factory overhead variance : Calculate the total factory overhead variance if 1.5 hours of labour hour is assigned in flexible budget for allocating overhead cost of each pairs

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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