The normal selling price is 16 per unit the companys

Assignment Help Accounting Basics
Reference no: EM13601638

The Cardinal Company produces T-shirts promoting Otterbein University to various retailers. The cost of producing and selling a single T-shirt at the company's current activity level of 10,000 units per month are:

  • Direct materials $ 3.00
  • Direct labor 2.00
  • Variable manufacturing overhead 1.00
  • Fixed manufacturing overhead 4.00
  • Variable selling and admin. Expenses 1.50
  • Fixed selling and admin. Expenses 1.00

The normal selling price is $16 per unit. The company's capacity is 12,000 units per month. Due to Otterbein University participating in the Division III National Championship game, an order has been received from a retailer for 2,000 additional T-shirts at $14 per unit. This order would not affect regular sales but would increase the company's total fixed costs by $10,000

Ignore the impact of income taxes in your calculation.Should the order be accepted? What would be the impact on monthly profits?

Reference no: EM13601638

Questions Cloud

A hockey puck has a mass of 0116 kg and is at rest a : a hockey puck has a mass of 0.116 kg and is at rest. a hockey player makes a shot exerting a constant force of 27.5 n
The daily milk production of cows is normally distributed : the daily milk production of cows is normally distributed with a mean of about 35 kgday and a standard deviation of 7
Compute the average markup percentage for setting prices as : nancy company has budgeted sales of 300000 with the following budgeted costs direct materials 60000 direct
If a woman has a weight of 130 lbf at sea level find in : the acceleration of gravity g as a function of elevation z above sea level is given by g 32.17 - 3.32x10-6 z where g
The normal selling price is 16 per unit the companys : the cardinal company produces t-shirts promoting otterbein university to various retailers. the cost of producing and
Hildren are playing on a vertical slide that is 10m high if : question children are playing on a vertical slide that is 10m high. if humps were added to this slide but the height
What is the probability that in the sample fewer than 35 : what is the probability that in the sample fewer than 35 are willing to spend extra for products and services from
During april darling company accumulated 300 hours of : at the end of april darling company had completed jobs 50 and 51. job 50 is for 200 units and job 51 is for 500 units.
Westerville auto company produces a small part that it uses : westerville auto company produces a small part that it uses in the production of its automobiles. the companys unit

Reviews

Write a Review

Accounting Basics Questions & Answers

  Balance in annes capital account

Allen invests $20,000 cash and Anne invests land that originally cost $20,000 in their new partnership. The land is now worth $35,000. Which of the following is the balance in Anne's capital account?

  Samuelson and messenger sampm began 2013 with 220 units of

samuelson and messenger sampm began 2013 with 220 units of its one product. these units were purchased near the end of

  Journalize the entries of employer payroll taxes payable

The Northwood Inn, the company's fiscal year, September30,2008. Journalize the entries. On August 1, the company collected six months rent of $3900 in advance.

  Advantage or disadvantage of reworking

the computers could be sold "as is" for $8,500. What is the net advantage or disadvantage of reworking the computers?

  Condensed data taken from the departmental income statement

condensed data taken from the departmental income statement for nell and company are shown below. miscellaneous selling

  Evaluate the alternatives from the perspective of amber

Amber, a publicly held corporation (not a TARP recipient), currently pays its president an annual salary of $900,000. In addition, it contributes $20,000 annually to a defined contribution pension plan for him.

  Rational of recognising costs

What are the rational of recognising costs as expenses at the time of project sale? Which are the accounting factors that sometimes keep reported operating results from reflecting the change in the value of a company?

  The fabric comes in 15-yard bolts if gapo has no beginning

material purchases budget gapo has projected sales of 325000 hospital gowns in october. each gown requires 2.5 yards of

  The shareholders equity of kramer industries includes the

the shareholders equity of kramer industries includes the data shown below. during 2014 cash dividends of 150 million

  During 20 2012 pam a single taxpayer reports the following

during 20 2012 pam a single taxpayer reports the following income and expense items relating to her interior design

  The brandilyn toy company manufactures a line of dolls and

the brandilyn toy company manufactures a line of dolls and a doll dress sewing kit. demand for the dolls is increasing

  Given the following how did the cvp change assuming cars

given the following how did the cvp change? assuming cars are always waiting to order 24 hours per day and the kitchen

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