User Account

All Pages

What factors must any company consider

Assignment Help Managerial Accounting
Reference no: EM133001784

Question - Technology Inc. Ltd sells desktop computer printers for $65 per unit. Unit product costs are:

Direct materials $12

Direct labor 20

Manufacturing overhead 6

Total $38

A special order to purchase 10,000 desktop computer printers has recently been received from another company, and Technology Inc. has the idle capacity to fill the order. The company will incur an additional $1.50 per printer for additional labor costs due to a slight modification the buyer wants to be made to the original product. One-third of the manufacturing overhead costs are fixed and will be incurred no matter how many units are produced. $2,100 of existing fixed administrative costs will be allocated to the order as "part of the cost of doing business".

Required -

a) Which of the data above should be ignored in making the special-order decision? For what reason?

b) Should Technology Inc. Ltd accept the order if the buyer offers $38 per unit for 10,000 desktop computer printers?

c) What factors must any company consider before accepting a special-order contract?

Reference no: EM133001784

Questions Cloud

Explain the impact of an impairment loss : That is, entity's assets are carried at no more than their recoverable amount. Explain the impact of an impairment loss on a company's profitability
What amount will franklin report as taxable income : What amount will Franklin report as taxable income? Moving expense: (50 km for employment) $1920. Eligible dividend income: $140.
Describe all five major accounting principles : Question - GAAP set forth standards or methods for presenting financial accounting information. Describe all five major accounting principles
What was cost of goods sold using the fifo cost flow : Lauer Corporation, During the year, Lauer sold 1,025 laptop computers. What was cost of goods sold using the FIFO cost flow assumption?
What factors must any company consider : The company will incur an additional $1.50 per printer. What factors must any company consider before accepting a special-order contract
How much is bad debt expense for flyer company : How much is bad debt expense? Flyer prepares an aging of accounts receivable and the result shows that 4% of accounts receivable
What the vacation pay expense and liability shall be : On the average, the employees are paid P 2,000 per week and the salary is expected to increase. What the vacation pay expense and liability shall be
Which of the journal entries correctly record the collection : Which of the journal entries correctly records the collection of an account receivable for which a 1% sales discount was recorded at the time of collection?
Calculate the amount of cash settlement : Question - Today the market shows that the three-month interest rate is 3% per annum, Calculate the amount of cash settlement

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine the labor rate variance

Ander Company has the following information concerning its direct labor: Determine the labor rate variance and whether it is favorable or unfavorable

  How many units would the company have to sell to attain

Thomas Ltd. sold 4,000 units during the year. How many units would the company have to sell to attain target operating income of $250,000?

  List atleast six benefits of budgeting

Should both favorable and unfavorable variances be investigated, or only the unfavorable ones and why? List atleast six benefits of budgeting.

  Find what must the expected return on the stock be

The expected return on the market is 14.72 percent, and the risk-free rate is 4.65 percent. What must the expected return on this stock be?

  Determine the contribution margin ratio for lanning company

Lanning Company sells 160,000 units at $45 per unit. Determine the contribution margin ratio, the unit contribution margin, and income from operations.

  How do demonstrate what is the bond value

If investors require a 12 percent pa yield, what is the bond's value? A bond has a 10 percent coupon rate and a $100 face value.

  Prepare purchases budget for kaloy enterprises for quarter

Kaloy Enterprises, a merchandising firm, Prepare the purchases budget for Kaloy Enterprises for the quarter ended June 30 with details shown for each month.

  Calculate bundled price for non natural birth deliveries

How do calculate bundled price for non natural birth deliveries? in regards to Asante Teaching Hospital: Activity- based Costing case

  What is definition of Market Value in Real Estate Appraisal

What is the definition of "Market Value" in Real Estate Appraisal? Using critical thinking skills with the definition of Market Value to discuss

  How have changes in information technology

How have changes in information technology impacted management of the value chain?

  How many performances do need to give of any production

If you sell tickets for $30 each, how many tickets do you need to sell for each production to break even? how many performances do need to give of any product

  Calculate revenues needed to obtain target operating income

How man haircuts have to be provided to earn an operating income of $80,000? To breakeven? Calculate the revenues needed to obtain the target operating income

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd