User Account

All Pages

What is the minimum price per unit

Assignment Help Accounting Basics
Reference no: EM132043246

Problem - Mckerchie Inc. manufactures industrial components. One of its products, which is used in the  construction of industrial air conditioners, is known as G62. Data concerning this product are given below:

Selling price: $160

Direct materials: $13

Direct Labor: $7

Variable manufacturing overhead: $6

Fixed manufacturing overhead: $29

Variable selling expense: $2

Fixed selling and administrative expense: $10

The above per unit data are based on annual production of 9,000 units of the component. Direct labor can be considered to be a variable cost.

The company has received a special, one-time-only order for 300 units of component G62. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. However, assume that Mckerchie has no excess capacity and this special order would require 50 minutes of the constraining resource, which could be used instead to produce products with a total contribution margin of $6,900. What is the minimum price per unit on the special order below which the company should not go?

A. $90

B. $23

C. $49

D. $78

Reference no: EM132043246

Questions Cloud

What should be included within an ehr chart : What should be included within an EHR chart? How important is accuracy to a future leader or the current organization?
What are some of the ad valorem property tax problems : Morgan inherits her father's personal residence, including all of the furnishings. What are some of the ad valorem property tax problems Morgan can anticipate
Compute steve allowable general business credit : Steve has a tentative general business credit of $85,000 for the current year. Compute Steve's allowable general business credit for the year
Discuss about the legal consequences of communication : Find a news article with a focus on legal consequences of communication. Inside the article, content must be relatable to any chapter concept.
What is the minimum price per unit : The company has received a special, one-time-only order for 300 units of component G62. What is the minimum price per unit
How much must carlota include in gross income this year : Trigger Inc. provides group term life insurance only to the officers of the corporation. How much must Carlota include in gross income this year
Which one is the most important for a company success : The needs assessment consists of organizational analysis, person analysis, and task analysis. In your opinion, which one do you think is the most important.
Should all organizations have the opt-in statements : Or should they only have an opt-out statement ?in which you are automatically enrolled unless you accept/check the out-out statement?
What was the bond carrying amount : Carter Sales uses the straight line method to amortize the bond discount. After the first interest payment on June 30, 2015, what was the bond carrying amount

Reviews

Write a Review

Accounting Basics Questions & Answers

  During the current period department a finished and

during the current period department a finished and transferred 50000 units to department b. of the 50000 units 20000

  When the serial bond account decreased during the year what

debt thousdands2014year-end interest rate2013year-end interest rateshort-term debtnbspnbspnbsp working capital

  All five of the basic things that scripture

MacArthur states that if you are doing all five of the basic things that scripture says is God's will you can do whatever you want. MacArthur summarizes Gods will by stating that it is "God's will that you be saved, Spirit-filled, sanctified, sub..

  What are objectives of a cost management information system

What is the difference between a financial accounting information systemand a costmanagement information system? What are the objectives of a cost management information system?

  Cash disbursements for selling and administrative expenses

Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,600 units are planned to be sold in March.

  Determine the markup percentage for product k

Determine the markup percentage for Product K. Determine the selling price of Product K. Round your answer to two decimal places. Determine the amount of desired profit from the production and sale of Product K.

  Suppose the company is already operating at capacity when

juett company produces a single product. the cost of producing and selling a single unit of this product at the

  Snake creek company has a trusted employee who as the owner

snake creek company has a trusted employee who as the owner said handles all of the book keeping and paper work for the

  Discuss net loss using the accrual method of accounting

assemble an income statement to determine net profit or net loss using the Accrual Method of Accounting

  What are the main facts from each case supports your stance

What are the main facts from each case supports your stance? How the firm's response to the attack does support your stance?

  The red and blue partnership has been created to operate a

the red and blue partnership has been created to operate a law firm. the partners have been attempting to devise a fair

  Primary differences between spot and futures contracts

What are the primary differences between spot, forward and futures contracts in the foreign exchange market? How and when would an MNC headquartered.

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