What world be the dollar effect on pre tax income

Assignment Help Accounting Basics
Reference no: EM131580857

Question - Wyoming wire produces 125-gauge barbed wire that is retailed through farm supply companies. Presently, the company has the capacity to produce 100000 tons of woire per year. it is operating at 80% of annual capacity, and at this level of perations, the cost per ton of wire is as follows:

direct material          560

direct labor               40

variable OH              50

fixed OH                  190

Total                       840

The average sales price for the output produced by the firm is 900 per ton. The state of Texas has approached the firm to supply 200 tons of wire for the state's prisons for 670 per ton. No production modifications would be necessary to fulfill the order from the state of Texas.

What costs are relevant to the decision to accept this special order?

What world be the dollar effect on pre tax income if this order were accepted?

Reference no: EM131580857

Questions Cloud

Compute the unit contribution margin : Problem - Billings Company has the following information available for September 2017. Compute the unit contribution margin
Undertake an option strategy that consists : Undertake an option strategy that consists of. lot the resulting net payoff as a function of S(T).
Determine the variable cost per haircut : Telly Savalas owns the Bonita Barber Shop. He employs 5 barbers and pays each a base rate of $ 1,300 per month. Determine the variable cost
Relates to the firms weighted average cost of capital : Which relates to the firms weighted average cost of capital?
What world be the dollar effect on pre tax income : Wyoming wire produces 125-gauge barbed wire that is retailed through farm supply companies. What world be the dollar effect on pre tax income
Bonds make semiannual payments : The bonds make semiannual payments and currently sell for 90.3 percent of par.
Calculate the current share price and dividend yield : Calculate the current share price, dividend yield and rate of capital gain for this case.
What are the benefits of activity-based costing : Write 400- 500 words that respond to the following questions with your thoughts, ideas, and comments. What are the benefits of activity-based costing (ABC)
Case study-a conflict of responsibilities : Use the following format to compose a case study analysis: Case Study - A Conflict of Responsibilities

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is their current yield

Heath Foods' bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8 percent.

  Construct record a liability for environmental liabilities

In 2007, at the time of the purchase, should Construct record a liability for environmental liabilities? If so, how much and In 2008, should the company record any liability due to BigMix filing for Chapter 11? If so, how much?

  Grown industries reported the following items for 2013

grown industries reported the following items for 2013 income tax expense 60000 contribution margin 200000

  Discuss the use of adjusting entries in the preparation of

discuss the use of adjusting entries in the preparation of accurate financial

  Operating income per employee hint the number of employees

compute the following profitability measures for the year ended december 27 2008 areturn on investment based on net

  Calculate the effect on the companys total net operating

masse corporation uses part g18 in one of its products. the companys accounting department reports the following costs

  Explain how each of the following events or series

Explain how each of the following events or series of events and the related adjusting entry will affect the amount of net income and the amount of cash flow from operating activities reported on the year end financial statements.

  Calculation of total sales assuming all sales are on credit

XYZ's receivables turnover is 4x. The accounts receivable at year-end are $600,000. The average collection period is 90 days. The question belongs to Accounting and it discusses about calculation of total sales assuming all sales are on credit

  Analysis of the change in owners equity

From an analysis of the change in owner's equity during the year, compute the net income (or loss) for 2011, assuming Andruw's drawings were $15,000 for the year.

  Journal entries for the preceding transactions

July 11 Issued 2,000 shares of $100 par value preferred stock for cash at $108 per share. Nov. 28 Purchased 2,000 shares of treasury stock for $10,000. Prepare the journal entries for the preceding transactions.

  On january 1 year xxx1 holmes co borrowed cash from legacy

on january 1 year xxx1 holmes co. borrowed cash from legacy bank by issuing an 80000 face value three-year term note

  Activity-based overhead rates

Rhode Company provides architectural services for mall development companies. The following data are available for 2013.Compute the activity-based overhead rates.

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