User Account

All Pages

What is the minimum selling price of the special order

Assignment Help Accounting Basics
Reference no: EM13481761

Pro sports inc. manufactures basketballs for the NBA. For thefirst 6 months of 2008, the company reported the following operating results while operating at 90% of plant capacity, andproducing 112,500 units.

sales 4,500,000
cost of goods sold 3,600,000
selling and administrative expenses 450,000
net income 450,000
Fixed costs for the period were; cost of goods sold 1,080,000,and selling and administrative expenses 225,000.

In july, normally a slack manufacturing month, pro sportsrecieves a special order for 10,000 basketballs at 28 dollars eachfrom he italian basketball association. Acceptance of the orderwould increase variable sellibg and adminstrative expenses 0.50 perunit becasue of shipping costs but would not increase fixed costsand expenses.

a) prepare an incremental analysis for the special order

b) should pro sports inc. accept the special order?explain.

c) what is the minimum selling price of the special order oproduce net income of 4.10 per ball

d) what non financial faxtors should managemnet consider inmaking its decision?

Reference no: EM13481761

Questions Cloud

Write a short memo to ralph sampson describing the analysis : westfield corporation makes two different boat anchors-atraditional fishing anchor and a high-end yacht anchor-usingthe
Use a vertical method to prepare the 2012 income statement : the accounting records of clear photography inc reflected the folllowing balances as of january 1 2012.cash-
Rsources appendix a the home depot inc annual report in : resources appendix a the home depot inc. annual report in fundamentals of financial accounting write a 1050- to
You know your assistant calculate the npvs correctly the : you know your assistant calculate the npvs correctly. the npv is after allowing for the outlay. here are data for five
What is the minimum selling price of the special order : pro sports inc. manufactures basketballs for the nba. for thefirst 6 months of 2008 the company reported the following
A person borrows 1375 at 115 simple interest a payment of : a person borrows 1375 at 11.5 simple interest. a payment of 320 at the end of 2 years and a payment of 640 is made at
Compute the cash payback period for each project round : the three stooges partnership is considering three long-termcapital investment proposals. each investment has a useful
Calculate the value of net cash flow under the head of : caterpillar is the largest industrywho makes construction equipment. company is interesting to build anew crain which
Reduce interest receivable by the amount calculated in : afton co. purchased 24000 of 4 10-year davis county bonds on july 12 2012 directly from the county at par value. the

Reviews

Write a Review

Accounting Basics Questions & Answers

  Elements of the generally accepted auditing standards

Describe the elements of the Generally Accepted Auditing Standards (GAAS). Describe how these standards apply to financial, operational, and compliance audits. Explain the effect that the Sarbanes-Oxley Act of 2002, and the Public Company Accounting..

  Analyze the effects of each of the following transactions

analyze the effects of each of the following transactions on each of the funds andor non fund accounts. salaries and

  What information do you give to the client

When you request the additional information from the client, she tells you that she has no more documentation and that is all you can be given.

  Which approach do you think would result in more useful

How do the provisions of  SFAS No. 123(R)  differ from the bill introduced by members of Congress (Dreier and Eshoo), which would require expensing for options issued to only the top five officers in a company? Which approach do you think would res..

  An explanation of why a company that announces deficiencies

write a 750- to 1050-word paper in apa format including citations and references summarizing your ideas about internal

  Straight line depreciation for financial reporting

The financial reporting carrying value of Boze Music's only depreciable asset exceeded its tax basis by $150,000 at December 31, 2009. This was a result of differences between straight line depreciation for financial reporting purposes and MACRS f..

  Budgeting the sales in units

Rodriquez Company budgeted the following sales in units: February production in units is:

  Sufficient fund to retire the bonds

Kate Greenway Corporation, having recently issued a $20 million, 15-year bond issue, is committed to make annual sinking fund deposits of $620,000. The deposits are made on the last day of each year and yield a return of 10%. Will the fund at the ..

  Net profit or loss due to foreign currency

Apple Company sold goods on account for 50,000 (L) pounds on November 2, 2006. On that same date, the controller entered into a forward contract to sell the pounds for $1.5920 on March 1, 2007. Apple Company's fiscal year ends on December 31, 2006..

  Prepare financial statements for a bonus

Completed plans for a commercial building but did not immediately collect the fee of $15,000 due to financing problems with the builder.

  Strand report as total infrequent losses

In its income statement for the year, what amount should Strand report as total infrequent losses that are not considered extraordinary?

  Short-run pricing decisions

Short-run pricing decisions include: (a) pricing a main product in a major market (b) adjusting product mix and volume in a competitive market while maintaining a stable price if demand fluctuates from strong to weak

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