The customer would like modifications made to product y45

Reference no: EM13598519

Scales Corporation has received a request for a special order of 6,000 units of product Y45 for $13.70 each. Product Y45's unit product cost is $11.50, determined as follows:

DM $2.50
DL $1.90
VOH $2.30
Fixed Manuf OH $4.80
Unit product cost $11.50

Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product Y45 that would increase the variable costs by $8.10 per unit and that would require an investment of $20,000 in special molds that would have no salvage value.

This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, the company's overall net operating income would increase (decrease) by:

($26,600)
$13,200
($55,400)
($21,300)

Reference no: EM13598519

Questions Cloud

United express unex is a package delivery company which : united express unex is a package delivery company which offers two types of service air delivery overnight and ground

The charter of a corporation provides for the issuance of : the charter of a corporation provides for the issuance of 100000 shares of common stock. assume that 45000 shares were

Assume that sufficient constraint time is available to : closter corporation makes three products that use the current constraint which is a particular type of machine. data

A corporation has 60000 shares of 25 par value stock : a corporation has 60000 shares of 25 par value stock outstanding that has a current market value of 120. if the

The customer would like modifications made to product y45 : scales corporation has received a request for a special order of 6000 units of product y45 for 13.70 each. product y45s

Choose two competitor companies of your choice that are us : choose two competitor companies of your choice that are u.s. gaap publicly traded companies. determine and compare

Using the double-declining-balance depreciation method : porter inc. acquired a machine that cost 720000 on october 1 2010. the machine is expected to have a four-year useful

On january 1 2006 sooner or later inc granted 1000 : on january 1 2006 sooner or later inc. granted 1000 at-the-money employee stock options. to align the compensation of

Why do you think gaap requires restatement of prior : why do you think gaap requires restatement of prior financial statements if there is a change in reporting entity?

User Account

All Pages