User Account

All Pages

What is the full cost of the product per unit

Assignment Help Managerial Accounting
Reference no: EM133048282

Question - Parker and Spitzer Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers:

Direct materials $66

Direct labour 30

Variable manufacturing support 48

Fixed manufacturing support 104

Total manufacturing costs 248

Markup (50%) 124

Targeted selling price $372

Parker and Spitzer Manufacturing has excess capacity.

Required -

a. What is the full cost of the product per unit?

b. What is the contribution margin per unit?

c. Which costs are relevant for making the decision regarding this one-time-only special order? Why?

d. For Parker and Spitzer Manufacturing, what is the minimum acceptable price of this one-time-only special order?

e. For this one-time-only special order, should Parker and Spitzer Manufacturing consider a price of 200 per unit? Why or why not?

Reference no: EM133048282

Questions Cloud

Explain organizational culture of an organization : To what extent does the organizational culture of an organization to which you currently belong or previously belonged support the strategic direction(s)?
What the annual amount of depreciation expense : At the beginning of Year 4, Farmer revised the expected life to eight years. What the annual amount of depreciation expense for each of the remaining years
Analyze algorithm for correctness and efficiency : Describe how to perform a task. Given this definition, discuss how you would analyze an algorithm for correctness and efficiency.
WSN Network design and security : Network protocol and Infrastructure For a Wireless Sensor Network - Description for the protocols you have chosen for the wireless sensor network
What is the full cost of the product per unit : Parker and Spitzer Manufacturing has excess capacity. What is the full cost of the product per unit. What is the contribution margin per unit
Determine the size of the cache memory : What are the trade-offs that determine the size of the cache memory? List and briefly explain five storage management responsibilities of a typical OS.
How much is the amount to be received : Bea construct the stand on the front of the lawn at a cost of $10,000; How much is the amount to be received (paid) by Bea during cash settlement
Security in your lives : While we may not have had much time together discussing security, this probably reminded you of events in your life
Ensemble method for prediction : Based on experience, provide an example of a business problem that may benefit from using an ensemble method for prediction. Provide some justification for why

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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