What would landor use as a minimum selling price

Assignment Help Accounting Basics
Reference no: EM133005131

Question - LANDOR Appliance Comp. makes and sell electric fans. Each fan regularly sells for P42. The following cost data per fan is based in the full capacity of 150,000 fans produced each period

Direct material P8

Direct labor P9

Factory overhead (70% variable and 30% unavoidable Fixed) P10

A special order has been received by Landor for sale of 25,000 fan to would Landor overseas customer. The only selling cost that would be incurred on this order would be p4 per fan for shipping. Landor is now selling P120,000 fans through regular channels each period.

1. What would Landor use as a minimum selling price for this special order?

2. Given the above date, how much would Landor regard as sunk cost

3. If Landor chooses to buy a new equipment, the increase or decrease in total company net income over the next five years will be

4. At what price for the new equipment would Landor be economically indiferrent between keeping the existing equipment or purchasing the new equipment?

Reference no: EM133005131

Questions Cloud

What account is never affected by the adjusting process : What account is never affected by the adjusting process? Why? Please provide examples. Why do companies make adjusting entries
Make the wage entries related to vacation pay : Supermercado Caridad offers its employees vacation benefits and contributes a 2% contribution to a 401K. Make the wage entries related to vacation pay
What is five safes data analytics framework : What is ‘Five Safes' data analytics framework and Briefly examines the implications of such frameworks when artificially intelligent algorithms
How much is the monthly interest expense : Microsoft signed a note payable and borrowed $150,000 from a bank at an annual interest rate of 6 percent. How much is the monthly interest expense
What would landor use as a minimum selling price : A special order has been received by Landor for sale of 25,000 fan to would Landor overseas customer. What would Landor use as a minimum selling price
What is the price earnings ratio : What is the price earnings ratio (PE) of the company, given total number of outstanding ordinary shares is 57,000 and market price of each share is $22
What is the maximum price you should be willing to pay : If you require an 12% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond
Determining the investment capital for the npv calculation : When determining the INVESTMENT CAPITAL for the NPV calculation, do I include the 34% additional investment
What the overhead controllable variance : In May, $289100 of overhead was incurred in working 59000 hours when 60000 standard hours were allowed. What the overhead controllable variance

Reviews

Write a Review

Accounting Basics Questions & Answers

  Different types of trainees who undergo training

Normally people of high calibre are selected through open advertisements to meet the human resource requirements at higher levels. However, junior-level vacancies are filled up by different types of trainees who undergo training in the company.

  Calculate the total estimated cost for a company

Calculate the total estimated cost for a company that produces 5,000 units of a product with the following cost behavior information: Fixed costs are $20,000

  Prepare the cash payments budget for the second quarter

Operating income for the first quarter of the coming year is projected to be $320,000. Prepare the cash payments budget for the second quarter

  Is it significant for company to follow strict budget even

is it important for a company to follow a strict budget even though they may be experiencing phenomenal profits? do you

  Discuss and critically evaluate the success of harmonisation

Choose a country as an example for illustration on how it has adopted IFRS in its attempt to seek harmonisation

  Find what is the ending inventory value at cost

Sales during the current year totaled $3060000, and net markups (markdowns) were $75000 ($111000). What is the ending inventory value at cost?

  Joshua thorp opened laser co on january 1 2011 at the end

joshua thorp opened laser co. on january 1 2011. at the end of the first year the business needed additional funds. on

  How much the business can claim as a deduction for the lease

FNSACC502 - Prepare income tax returns for individuals - How much the business can claim as a deduction for the lease payment in 2012 -13 income year?

  Why do you think fraud is defined differently

Based on authoritative sources (including peer reviewed articles from the library, Fraud Examiners Manual, AICPA, etc), compare and contrast at least.

  Determine the total and per share dividends for each class

The amounts distributed as dividends are presented below. Determine the total and per share dividends for each class of stock for each year

  What is the book value of the plant asset

What is the book value of the plant asset on the December 31, 2014, balance sheet assuming that Holt Company uses the double-declining-balance method

  How should the auditor manage this situation

Assume materiality for the financial statements as a whole is $100,000, How should the auditor manage this situation

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