What impact would accepting this special order have

Assignment Help Accounting Basics
Reference no: EM132695027

Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April, when she expects to produce and sell 3,000 meals:

Fixed costs included in this income statement are $4,500 for meal production and $600 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.50 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected.

Required

Problem 1. What impact would accepting this special order have on operating profit?

Reference no: EM132695027

Questions Cloud

Define the different lighting styles : Define the different lighting styles. Give examples, using real restaurants you have visited. Explain why lighting is so important in the FOH.
What division of profits would recommend to michael : What division of profits would recommend to Michael and Jesse? Why? Using your recommendation, prepare a schedule sharing the net income.
Explain the different customer base : Using American service style and Family service style for comparison, answer the following:
What are the different product management methods : What are the different product management methods compared to traditional "waterfall" product management processes?
What impact would accepting this special order have : What impact would accepting this special order have on operating profit? Fixed costs included in this income statement are $4,500 for meal production and $600
What are audit implication for a company : Question - What are audit implication for a company with the following analytical procedure results/changes from previous year
What is service expectation : What is service expectation? How does the level of expected service and the service style change, based on operational variables such as type of operation
How much interest expense will be reported for the six-month : The company's year-end is December 31. How much interest expense will be reported for the six-months ending Decmeber 31, 20X6?
What was the effective rate of interest per period : The costs directly associated with issuing the bonds totaled $25,000. What was the effective rate of interest per period on this bond issue?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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