User Account

All Pages

What is impact of decision on short-term operating profit

Assignment Help Accounting Basics
Reference no: EM132703793

Question - Special Order; Relevant Costs; Opportunity Cost Sharman Athletic Gear Inc. (SAG) is considering a special order for 15,000 baseball caps with the logo of East Texas University (ETU) to be purchased by the ETU alumni association. The ETU alumni association is planning to use the page 442caps as gifts and to sell some of the caps at alumni events in celebration of the university's recent national championship by its baseball team. Sharman's full manufacturing cost per hat is $3.50, which includes $1.50 fixed overhead cost related to plant capacity and equipment. ETU has made a firm offer of $35,000 for the hats, and Sharman, considering the price to be far below production costs, decides to decline the offer. 

Required -

1. What is the impact of this decision on short-term operating profit, rounded to the nearest whole dollar?  

2. How might this example be used to illustrate the notion of opportunity cost?

Reference no: EM132703793

Questions Cloud

What role should Dr Mackenzie hold at MWC and explain why : Dr. Mackenzie and her husband, Anthony, incorporated MWC on January 2, 2020, with the help of a lawyer. What role should Dr Mackenzie hold at MWC and explain
What are the effects of financial leverage : What are the effects of financial leverage? Why risk of shareholders increases as the firm's financial leverage rises
Determine any gains or income that may be recognized : Adam is contributing cash of $200,000, Determine any gains/losses or income that may be recognized incident to formation of ABCD Corp
Compare approach of townsmen to minnie wright : Compare the approach of the townsmen to Minnie Wright to that of the townswomen who accompany the men on their search for evidence of the crime.
What is impact of decision on short-term operating profit : ETU has made a firm offer of $35,000 for the hats, What is the impact of this decision on short-term operating profit, rounded to the nearest whole dollar
Determine the maximum amount of personal tax credit : Mr. Johnson has Net Income For Tax Purposes of $250,000, Determine the maximum amount of 2017 personal tax credit, including transfer from a spouse or dependent
Large costs and lengthy time to develop drug : How has Merck been able to achieve substantial returns to capital given the large costs and lengthy time to develop a drug?
Differences between stock dividend and stock split : Contrast the differences between a stock dividend and a stock split.
What is the latest date he has to file a notice of objection : Tom received it on May 30, 2021. If Tom disagrees with the notice of reassessment, what is the latest date he has to file a notice of objection

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a responsibility report for january

Actual costs incurred for January 2014 are indirect labor $13,570; indirect materials $13,770; Prepare a responsibility report for January 2014

  In a minimum 200 word response describe some ways how the

in a minimum 200 word response describe some ways how the public has responded to the october 2001 usa patriot act. has

  What the differential impact of conservatism on accounting

The influence of tax laws on accountants in the countries concerned. Comment whether you agree or disagree with the statement

  Compute the rate of return on assets profit margin on sales

Compute the rate of return on assets, profit margin on sales, earnings per share, price-earnings ratio, and current ratio for each of the 5 years for Matheny Inc.

  What is an intangible asset should all intangible assets

what is an intangible asset? should all intangible assets be subject to amortization? explain why or why not. why are

  Determine percent of sales method

Determine Percent of Sales Method,Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.

  What is cost of goods sold under the average-cost method

Assuming that a periodic inventory system is used, what is cost of goods sold under the average-cost method

  Prepare the journal entries that should be recorded

During 2018, 149,500 coupons are presented for redemption. Prepare the journal entries that should be recorded in 2018 relative to the premium plan

  On june 30 20x5 maine lobster purchased a patent for a new

on june 30 20x5 maine lobster purchased a patent for a new freezing process at a cost of 33600. it estimated that the

  Janelle carter deposited 9750 in the bank on january 1 1993

the following situations involve the application of the time value of money conceptjanelle carter deposited 9750 in the

  What significant information is included in auditor report

To complete this Discussion: Think about the following: The purpose and functions of the notes to the financial statements.

  Prepare consolidation entry b at december

Prepare consolidation Entry B at December 31, 2018 in relation to these bonds. Prepare consolidation Entry B at December 31, 2019 in relation to these bonds.

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