What is the contribution margin for the special order

Assignment Help Accounting Basics
Reference no: EM133182671

Question - Franco, Inc., produces dental office examination chairs. Franco has the capacity to produce 9,000 chairs per year and currently is producing 6,000. Each chair retails for $13,000, and the costs to produce a single chair consist of direct materials of $3,000, direct labor of $3,000, and variable overhead of $1,000. Fixed overhead costs of $1,000,000 are met by selling the first 4,000 chairs. Franco has received a special order from Ghanem, Inc., to buy 700. Each chair is sold for $12,000 (selling price of one chair). There are no additional costs needed for this special order. What is the contribution margin for the special order?

Reference no: EM133182671

Questions Cloud

How many members will the club need to have to break even : What will be the cost for each source of financing and Determine the optimum cost of capital using the Weighted Average Cost of Capital (WACC)
What are the total conversion costs for the year : Brenda Ltd. had the following costs for the year: Salary of the head office receptionist 55,000. What are the total conversion costs for the year
Explain the challenges in minimizing working capital : Explain the importance of minimizing working capital. Explain the challenges in minimizing working capital.
Senior cloud architect at Google : You are hired as a Senior Cloud Architect at Google. Google stated they are having issues with less visibility with more complexity.
What is the contribution margin for the special order : Franco has the capacity to produce 9,000 chairs per year and currently is producing 6,000. What is the contribution margin for the special order
Quantitative and one qualitative technique : Identify one quantitative and one qualitative technique. How do the techniques complement each other?
Corporate it transformation at barco : 1. Should reducing IT spending be one of the keys to the business case (table 2 in the case)? Why or why not?
Find the price per share of verizon stock : Verizon has 100 million shares of stock outstanding and $50 million of debt. The YTM for its debt is 8.0%. Find the price per share of Verizon stock
Successfully implemented enterprise system : Using the Web, conduct research to identify three organizations that recently and successfully implemented an enterprise system.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Explain how the amount of goodwill is determined

Explain how the amount of goodwill is determined. From a theoretical standpoint, why should consolidated financial statements be prepared?

  Calculate the amount of share capital in the statement

Calculate the amount of share capital in the statement of financial position of Acacia Ltd as at 30 June 2019 (Show all workings.)

  On february 1 2013 fox corporation issued 9 bonds dated

on february 1 2013 fox corporation issued 9 bonds dated february 1 2013 with a face amount of 200000. the bonds sold

  Which is not excluded from the scope of aasb revenue

Which is NOT excluded from the scope of AASB 118 Revenue? Revenue arising from primary production activities. / Subscriptions.

  Did the movie have a positive contribution margin

Did the Movie have a positive contribution margin? Assume that all costs not specifically.What type of business leverage does this contribution margin represent

  What would total equities be on august

Acquired $8,800 of direct materials, $3,872 of it paid for with cash, the rest bought on open account. What would total equities be on August 31

  Determine the classification of the lease option

Determine the classification of the lease option being considered, and indicate what the effect would be on the statement of financial position

  Discuss due to fiscal strategic conservatism

Due to fiscal strategic conservatism, there is typically a post retirement liability for post retirement benefit plans since very few are funded.

  Determine the estimated accounting rate of return

Determine the estimated accounting (book) rate of return (to two decimal places) based on average investment for this proposed investment

  Prepare a schedule to determine the incremental cost or

a company manufactures an electric motor that is uses inseveral of its porducts. management is considering whether to

  What is the adjusted book balance on the bank reconciliation

The following information is available for Ellen's Fashions, Inc. for the current month. What is the adjusted book balance on the bank reconciliation

  Compute the amount richard would withdraw

At the end of the 10 years, Richard withdraws the accumulated amount of money. Compute the amount Richard would withdraw

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