What the opportunity cost associated with the order is

Assignment Help Managerial Accounting
Reference no: EM132711634

A company's unit costs based on 100000 units are:

Variable costs$75

Fixed costs30

The normal unit sales price per unit is $163. A special order from a foreign company has been received for 5000 units at $135 a unit. In order to fulfill the order, 3600 units of regular sales would have to be foregone.

Problem 1: What the opportunity cost associated with this order is

Reference no: EM132711634

Questions Cloud

How much of the setup costs are allocated to superior model : The company expects to incur $120,000 of total setup costs this year. How much of the setup costs are allocated to the Superior model using ABC costing?
Disadvantage of investing in residential real estate : Explain the advantage or disadvantage to someone who is new to understanding how residential real estate investments work.
Find how the december investment balance on palmetto : Palmetto Company, Present a schedule showing how the December 31, 2021 investment balance on Palmetto's books, shown in its trial balance, was calculated.
Determining the company wacc : A company has the following information: (1) before-tax cost of long-term debt is 9%, (2) the company's tax rate is 30%, (3) the riskfree rate is 4%,
What the opportunity cost associated with the order is : What the opportunity cost associated with this order is? The normal unit sales price per unit is $163. A special order from a foreign company has been received
Compute how much is the margin of safety for the company : Total fixed expenses, $42000; Actual sales for the month of June, 7000 units. How much is the margin of safety for the company for June?
What is the price of an american put : Given that the strikeprice is K=$55 and the risk-free rate is 4%, what is the price of an American put?
What is the power of big media : What is the power of big media and how has it changed given technological changes in the last twenty years?
Cost of new common equity-new corporation : New Corporation has a stock price of $30 and next period will pay a dividend of $2. The long term dividend growth rate is 3%. If flotation costs are 12%

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Prepare complete master budget for bengal corporation

Prepare complete Master Budget for Bengal Corporation, for the third quarter of the year 2020, concluding with the Cash Budget

  Prepare a well labeled and organized purchases budget

Prepare a well labeled and organized Purchases Budget for the month of January 2015. SHOW & LABEL ALL SUPPORTING CALCULATIONS

  Calculate the total actual payroll

Calculate the total actual payroll. Standard costs for material cannot be used because customers require unique materials and all jobs are different sizes.

  Investment projects using the project profitability index

The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.):

  Calculate the net benefit of purchasing the new machine

Calculate the net benefit (cost) of purchasing the new machine. Health Scan, Inc. paid $50,000 for X-ray equipment four years ago.

  Find how much was the joint operation net income

P 6,600,000; and QQ paid expenses of P 1,899,150 out of joint operation funds. How much was the joint operation's net income after the bonus to QQ?

  What are the qualitative goals

Does your recommendation satisfy the goals of each? Do you understand break even and operating leverage? Are there strategic issues in the case?

  Do you agree with the president

Do you agree with the president? Why or why not? Explain your point - Where were costs in line and where were they out of line?

  Construct a cash budget for the period january - april

Construct a cash budget for the period January - April 2020. ABC ltd is preparing its budget for the 4 months commencing 1.1.20.

  What were total manufacturing costs incurred for the month

What were total manufacturing costs incurred for the month? What was the cost of goods manufactured during the month? What was the cost of goods sold

  Which variances will the company investigate

Which variances will the company investigate? Resset Co. provides the following results of April's operations: F indicates favorable and U indicates

  Prepare whitman projected income statement

Prepare Whitman?'s projected income statement if 4,220 garments are cleaned in March. ?First, prepare the income statement using the traditional? format

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