What would be net benefit to the business for coca plc

Assignment Help Managerial Accounting
Reference no: EM132974476

Coca plc is a profitable business that produces a single product. The following information is available concerning the product.

Per unit (£)

Selling price 31

Variable costs (13)

Fixed costs (16)

Profit 2

An overseas business has recently offered to buy 4,900 units of the product for £16 per unit over the next year.

If the order is accepted, the business will have to pay workers overtime rates to complete the order, which will increase variable costs by £1 per unit. It will also means that a separate factory, which is currently not being used but is part of the company´s assets, will have to be used to complete the order. The loan of the factory costs £5,500 per year to the company.

Problem 1: What would be the net benefit (or loss) to the business if the order is accepted?

Reference no: EM132974476

Questions Cloud

What is a brief summary of technical analysis : What is a brief summary of technical analysis in the context of your findings of moving averages. Can you time buying or selling of stocks
What is the weighted average no : What is the weighted average no, of ordinary shares outstanding that Melon should use to calculate diluted earnings per share
Contrast budgeting for businesses and government budgeting : Without revealing personal information, contrast budgeting for businesses, personal household budgets, and government budgeting? Are they really that different?
What is the weighted average number of ordinary shares : Profit for 2021 was P4,965,000. Terms of the option make them currently exercisable. What is the weighted average number of ordinary shares
What would be net benefit to the business for coca plc : Coca plc is a profitable business that produces a single product. What would be the net benefit (or loss) to the business if the order is accepted?
How much salary expense is incurred or recorded by company : Week is paid to her at the end of the first week in January 2020. How much salary expense is incurred (recorded) by the company in 2020?
What are the net operating cash flows in years : The Campbell Company is considering adding a robotic paint sprayer to its production line. What are the net operating cash flows in Years 1, 2, and 3
Find what is amount of department store cost of goods sold : The department store uses accrual-basis accounting. Based on the preceding information,What is the amount of the department store's cost of goods sold in 2020?
How are benchmarks used in setting a preliminary judgement : How are benchmarks used in setting a preliminary judgement about materiality? How will these benchmarks differ based on the client's industry

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What is a work breakdown structure

What is a Work Breakdown Structure (WBS) within project management. How do the project's business requirements and technical requirements impact the WBS

  Journalize the entry that should be made by the company

The company had been notified by the bank at the time of the collection but had made no entries. Journalize the entry that should be made by the company

  What should be the january cash disbursements

Morrish Inc. bases its manufacturing overhead, What should be the January cash disbursements for manufacturing overhead on the manufacturing overhead budget?

  Prepare a short report for mr banner

Prepare a short report for Mr. Banner to explain the reasons for the negative cash balance at the end of the previous year and other operating problems. To support your points, you may use a statement of cash flows and relevant financial ratios.

  What the controllable variance of beacon company is

The company uses a two-way analysis of overhead variances. The controllable variance of Beacon Company is? Beacon Company manufactures various types of plastic

  Is the plan devised by spencer and the cfo ethical and why

Juniper Packaging Solutions, Assume that Spencer and the controller are both firmly convinced that the new equipment will increase shareholder value.

  Prepare the adjusting entry for the deferred tax

MACRS depreciation was $209,301 higher than book. Prepare the adjusting entry for the deferred tax. There have been recent tax structure changes

  What is the net income using variable costing

What is the net income using variable costing? Canarie Manufacturing produces snow shovels. The selling price per snow shovel is $28.00.

  How to calculate total cost of goods manufactured

How to Calculate total cost of goods manufactured? Calculate prime costs for both book and brochure and total monthly prime cost.

  BUSI 3423 Intermediate Accounting Assignment

BUSI 3423 Intermediate Accounting Assignment Help and Solution, Yorkville University - Assessment Writing Service - Prepare Dragonite's journal entry to record

  What is the eva for sanchez? company

Net operating profit after taxes ?$500,000, The adjusted figures reflect adjustments used by Stern Stewart? & Company. What is the EVA for Sanchez? Company?

  Evaluate what is the weighted average contribution margin

What is the Weighted Average Contribution Margin?At XYZ Company, two products are produced as follows: Larges sell for $94 per unit with variable costs .

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