What is the differential cost of selling

Assignment Help Accounting Basics
Reference no: EM132984491

Question - Blade Division of ABC Co. produces hardened steel blades. One-third of the Blades Division's output is sold to the Lawn Products Division of Dana; the remainder is sold to outside customers. The Blade Division's estimated sales and standard costs data for the fiscal year ending June 30 are as follows:

 

Lawn Products

Outsiders

Sales

P15,000

P40,000

Variable costs

(10,000)

(20,000)

Fixed costs

(3,000)

(6,000)

Gross margin

P2,000

P14,000

Unit sales

10,000

20,000

Lawn Products can buy the blades from an outside supplier at P1.50 each. Assume the Blade Division is now at capacity and sufficient demand exists to sell all production to outsiders at present prices, what is the differential cost (benefit) of selling the all blades to external customers?

Reference no: EM132984491

Questions Cloud

Determine the predetermined overhead rate : At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate
What the amount of total monthly car sales : What the amount of total monthly car sales at which ABC Corp. would be indifferent (answer may be rounded off) as to which plan is selected
What are accounting conceptual frameworks : What are accounting conceptual frameworks and why are they seen as useful? Critically assess the extent to which conceptual frameworks have improved accounting
What is impairment : What is impairment? What impairment should be recorded in the accounts of Meow Plc for the listed shares and the three year bond
What is the differential cost of selling : Lawn Products can buy the blades from an outside supplier at P1.50 each. What is the differential cost of selling
Who is currently one year old : The opportunity rate for the couple over the given time horizon is 9%, and the child, who is currently one year old
Write a memo from the payroll department : Write a memo from the Payroll Department to the commissioned employees, explaining why they should complete a TD1X
Pass the necessary consolidation journal entries : Pass the necessary consolidation journal entries and the journal entries to record the non-controlling interest if the non-controlling interest in the acquirer
What the amount to be recognized : ABC Corp purchased a debt instrument at its face value of P1,000,000. What the amount to be recognized in P/L assuming the investment is classified as FA-FVTOCI

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