What is the lowest price per unit

Assignment Help Managerial Accounting
Reference no: EM133146327

Question - Kim Exporters, LTD produces wall mounts for flat panel television sets.

The company just received a special order from Rakesh offering to buy 2,500 wall mounts for $29 per unit. Rakesh requires all 2,500 units to come from the same supplier (i.e., he cannot purchase less than 2,500 units).

The current, normal sales price per unit is $46. Variable costs to produce are $26. Total Fixed costs are $216,000.

Kim Exporters has capacity of 24,000 units. Before the special order, its sales manager Kim estimated that she would be able to sell 22,000 units to existing customers.

Via a financial perspective, Kim feels she must decline the offer.

But, she would like to counter Rakesh's offer with a different selling price.

Required - Assuming a financial perspective, what is the lowest price per unit that Kim Exporters, LTD would be willing to accept for these 2,500 units from Rakesh?

Reference no: EM133146327

Questions Cloud

Create the journal entries required for each of situations : Given the following information, create the journal entries required for each of the situations described: Estimated revenues Property taxes $1,250,000
What are major differences of capital adequacy requirements : What are the major differences of capital adequacy requirements under Basel I and II Accord, and why despites different stages of Basel requirements
Difference between innate immunity and adaptive immunity : Discuss the five different classes of vaccines used in active immunity. Describe the difference between innate immunity and adaptive immunity.
What are the advantages of hiring underwriters : Read the article: "Going Public? Here is a how-to guide", The Economist, October 2nd, 2021, What are the advantages of hiring underwriters
What is the lowest price per unit : Assuming a financial perspective, what is the lowest price per unit that Kim Exporters, LTD would be willing to accept for these 2,500 units from Rakesh
How a typical coronavirus compares to COVID-19 : Do some research on coronaviruses and then share what you learn about how a typical coronavirus compares to COVID-19.
Compute the materials spending variance : Budgeted direct materials purchased and used = 22,000 pounds. Use the information presented for Great Outdoors to compute the materials spending variance
Explain implications for future interventions : Explain the implications for future interventions. Explain the theory's relevancy to other public health issues or topics.
Critically evaluate and create a bim execution plan : Critically evaluate and create a BIM execution plan and explain all BIM dimensions that can be used for a building project.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd