User Account

All Pages

What is the minimum amount that the firm should be willing

Assignment Help Managerial Accounting
Reference no: EM132502617

Consider the following information, prepared based on a monthly capacity of 200,000 units:

Category

Cost per Unit

Variable manufacturing costs           $33

Fixed manufacturing costs               $12

Variable selling costs                      $10

Fixed selling costs                           $8

  • Capacity cannot be added in the short run and the firm currently sells the product for $75 per unit.

Question 1: The company is currently producing 180,000 units per month. A potential customer has contacted the firm and offered to purchase 20,000 units this month only. Since the potential customer approached the firm, there will be no variable selling costs incurred on this order. What is the minimum amount that the firm should be willing to accept for this order?

Reference no: EM132502617

Questions Cloud

How much value will the new equipment create for the firm : How much value will this new equipment create for the firm? A firm believes it can generate an additional $4,200,000 per year in revenues
Write about Stress Coping Strategies : Write about Stress Coping Strategies guided with the following out lines. According to what you have studies put a personal plan that can help you to cope
How to deposit in the account : Suppose you want to have $600,000 for retirement in 30 years. Your account earns 5% interest. How much would you need to deposit in the account each month?
Discuss about the treatment programs : Do you believe that treatment programs or therapists should be able to facilitate 12 step programming in treatment when clients can attend AA or other 12 step.
What is the minimum amount that the firm should be willing : What is the minimum amount that the firm should be willing to accept for this order? prepared based on a monthly capacity of 200,000 units
Tax on interest and capital gains : Present your answers to the above questions in a Excel spreadsheet
Should the firm purchase the new equipment : How would your analysis change if this project was less risky than the firm's other projects? Be specific. Should the firm purchase the new equipment?
Compute the the current ratio after the completion : Assume that Red Missile Company pays the note payable of $163,000, thus reducing cash to $17,000. Compute the The current ratio after the completion
Describe the concepts of power and authority : Outline how the concepts of power and authority in relationships with service users can impart the partnership approach. Discuss the approach in relation.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Compute the partial productivity ratios for each year

Compute the partial productivity ratios for each year. Comment on the effectiveness of the productivity improvement program. Compute the increase in profits attributable to increased productivity, net of gainsharing.

  Journalize the transactions of july 5

Journalize the transactions of July 5, November 3, and December 10 and what is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?

  The principal must be paid in february

The note is at 10 percent per annum and requires monthly interest payments of 500. The payments are made on the 20th of each month. The principal must be paid in February of 2013.

  Total manufacturing overhead costs

How can I assign the total 2014 manufacturing overhead costs to the two products using activity based costing (ABC) and determine the overhead cost per unit.

  Further information was determined by examining the company

Further information was determined by examining the company's 2014 income statement.

  Deer valley lodge a ski resort in the wasatch mountains of

deer valley lodge a ski resort in the wasatch mountains of utah has plans to eventually add five new chairlifts.

  Cash convesion cycle for diciolla company

The DiCiolla Co has sales of $12 million, CGS of $9 MM, and has $2.5 MM of inventory. Receivables are $750,000, payables are $666,667 and the company pays its payables in 30 days.

  Why is it important that information be reliable

Why is it important that information be reliable, accurate and current? How can these things be checked?

  Recalculate your answer to part b assuming

Recalculate your answer to part b assuming Marie can lower the amount paid to instructors to $3,500 per class. Should Marie seriously pursue this option?

  Cost drivers-activity-based costing

Andrea Boss, Inc. manufactures five models of kitchen appliances at its Vista plant. Using the activities listed above, identify for each activity one or more cost drivers that might be used to assign overhead to Andrea Boss's five products.

  What is pension expenditure for the general fund for year

The pension plan paid benefits of $16,400 and refunded employee contributions of $1,600 for year 1. What is pension expenditure for the general fund for year?

  Compute the break-even point in units and dollars

Compute the break-even point in units and dollars - Compute the margin of safety in dollars and as a ratio, assuming actual sales

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