User Account

All Pages

What price would be offered to long-term customers

Assignment Help Managerial Accounting
Reference no: EM132744568

Question - PRICING DECISIONS AND CUSTOMER PROFITABILITY

THEORETICAL QUESTIONS TO CONSIDER:

Market-based approach vs cost-based approach

Influence of time horizon on price-setting

Customer profitability analysis

Question - Sunrise Ltd is approached by an agent for an overseas customer seeking to source a large one-time-only special order for a product similar to one offered to regular customers. Sunrise Ltd has excess capacity.

The following per unit data applies for sales to regular customers:

Direct materials $45.60

Direct manufacturing labour $25.90

Variable manufacturing overhead $50.00

Fixed manufacturing overhead $100.00

Required -

(a) What is the minimum acceptable price of this one-time-only special order?

(b) What price would be offered to long-term customers?

Reference no: EM132744568

Questions Cloud

International project management : Explain the challenges and opportunities in developing a project statement of work with a diverse team;
Determine the contribution margin per direct labor hour : Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Determine the contribution margin per direct labor hour
Analyse the brexit impact on uk economy : The advocates of ''Resource Dependence'' approach believe that they want to create their monopoly and there is no need to rely on others rather others
Case-starbucks-the leadership of howard schultz : Starbucks was started in 1971 by three academicians in Seattle. Ten years later, Howard Schultz joined the company. During his trip to Italy he realized
What price would be offered to long-term customers : The following per unit data applies for sales to regular customers: Direct materials $45.60. What price would be offered to long-term customers
Cost of goods sold and gross profit mean : What does the cost of goods sold and gross profit mean? Why show both gross profit and net income?
Discuss the characteristics of a highly effective team : The size, quality, and strength of a team depends on the individual contributions of each team member. Teamwork is developed, nurtured, and encouraged
Chester income statement : Chester has negotiated a new labor contract for the next round that will affect the cost for their product Camp. Labor costs will go from $7.86 to $8.36
Describe the exact nature of the project : Describe the exact nature of the project you propose to do and why you want to do this particular project

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine cost of completed and transferred-out production

Determine the cost of completed and transferred-out production, the ending work in process inventory , and the total costs assigned by the Rolling Department.

  Discuss the importance of capacity planning in deciding

Discuss the importance of capacity planning in deciding on the number of police officers or fire trucks to have on duty at a given time.

  What excess of cash available over disbursements for june

The desired ending cash balance is $40,000. What The excess (deficiency) of cash available over disbursements for June will be

  What is the relevant cost of kilograms of the raw material

Carol Inc.What is the relevant cost of the 120 kilograms of the raw material when deciding whether to proceed with the special project?

  What effect is expected to occur to the company

Discontinuing the segment will allow the company to avoid half of the fixed costs. What effect is expected to occur to the company's overall profit?

  Prepare the journal entries for electronics inc

Electronic Inc. sells a photocopy system to Centennial College, Prepare the journal entries for 2020 and 2021. If there is no entry be sure to state no entry.

  What level of the organization the employee was at

what level of the organization the employee was at? How might your tool selection differ for an upper level versus lower level employee

  Are these added to the initial cost

Are these added to the initial cost? Likewise, the item has annual operating revenue of 2M but also incurs 400K in operating expenses, annual fee of 5K for environmental impact.

  Solve the total amount of overhead applied to job

Bulla Corporation has two production departments, Machining and Customizing. Calculate the total amount of overhead applied to Job K369 in both departments.

  Write down response to the panel member question

For the past 5 years, Shirin Nadia has been working. Imagine yourself as Shirin and write down your response to the panel member's question.

  Determine the break even point

Give the following cost data Costs /per unit labor . $ 4 Materials .5 Fixed cost . $ 12000 Determine the break even point in units if the selling price is $ 19.00 Determine the break-even point in sales at a selling price of $ 19.00 What would profit..

  Compute the company cost of goods sold

If VeriCo's cost of goods manufactured for 2019 amounted to $1,890,000, please determine the company's cost of goods sold for the 2019.

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