What will be the incremental contribution of the special

Assignment Help Financial Accounting

Reference no: EM131212398

Beachwood Classics makes furniture for children. It has received a special order for 1,500 units that will require it to sell a unit (a table and two chairs) for $35. The regular average selling price is $40 per unit. The unit product cost is broken down as follows: direct labor, $5.50; direct materials, $8.75; variable overhead, $1.75; and fixed overhead, $3.25. The company had already budgeted its production at 6,500 units. If the company has spare capacity, what will be the incremental contribution of the special order to operating profit?

A : $28,500

B : $31,125

C : $23,625

D : $21,000

Reference no: EM131212398

Questions Cloud

What is the weighted average of the iit shares : For Japan for these seven products for 2012, what is the weighted average of the IIT shares? Which country has relatively more IIT in these seven products?

How the coase theorem provides an alternative to government : Prepare a 2-3 page paper using APA format discussing how the Coase Theorem provides an alternative to government regulation and provision of services. How is the definition of private property a critical part of this analysis?

Capabilities of online analytical processing : What are the capabilities of online analytical processing (OLAP)? What is the value of this tool to business? Is OLAP much different from data mining and warehousing? Explain

Could the use of an environmental bond satisfy : What is the present value of $450 in ten years at a discount rate of 10%?

What will be the incremental contribution of the special : Beachwood Classics makes furniture for children. It has received a special order for 1,500 units that will require it to sell a unit (a table and two chairs) for $35. The regular average selling price is $40 per unit. The company had already budgeted..

What is the hedged return for an australian resident : What is the hedged return for an Australian resident who undertakes an investment overseas? Demonstrate? Assume there is a fall in the domestic interest rates to 6% how will covered interest parity be restored?

How many bacteria will be around at the end of 15 minutes : Is there a difference between these bacteria and people that might give us some hope for our long-run survival? If so, is it likely to work through P, A, or T?

What does the enzyme catalase do : What does the enzyme catalase do?

Provide journal entry for the estimated warranty expense : Quantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a customer was given $220 cash under terms of the..

User Account

All Pages