Breakeven, Financial Accounting

Assignment Help:
Baseball Products manufactures a single product with the following full unit costs at a volume of 2,000 units:

Direct materials $ 900
Direct labor 360
Manufacturing overhead* 610
Selling expenses (50% variable) 300
Administrative expenses** 290
Total per unit $2,460

*Note that per unit manufacturing overhead costs include $840,000 fixed costs
**Note that per unit administrative expenses include $500,000 fixed costs.

A company recently approached Baseball’s management about buying 200 units of product. Baseball currently sells its product to dealers for $2,600 per unit. Capacity is sufficient to produce the extra 200 units. No selling expenses would be incurred on the special order.

What is the minimum price Baseball should charge just to break even on the special order?

Related Discussions:- Breakeven

Homework help, I am needing homework help on my Principles to Accounting 1,...

I am needing homework help on my Principles to Accounting 1, but don''t know how much you guys charge

What is auditors report explain, Q. What is Auditors report explain? Sp...

Q. What is Auditors report explain? Special Report - Special report is a term used for Auditors' reports issued in connection with various types of financial presentations, inc

Managing organisations with multiple objectives, The difficulties associate...

The difficulties associated with managing organisations with multiple objectives To the level that an organisation faces a range of stakeholders then they also face multiple ob

Record the appropriate journal entry., Grand Champion, Inc., purchased Amer...

Grand Champion, Inc., purchased America's Sweethearts Corporation on January 1, 2013. At the time, America's Sweethearts had $750,000 of identifiable assets and $525,000 of liabili

Dissolutions, DISSOLUTIONS A partnership may be dissolved due to variou...

DISSOLUTIONS A partnership may be dissolved due to various reasons which include: Poor trading that has led to losses A partner dying or leaving the firm The time

Accounting 2 assistance, working with par value and common value and prefer...

working with par value and common value and preferred value in accounting help

Explain the mechanism, Explain the mechanism that states use to prevent the...

Explain the mechanism that states use to prevent the double taxation of the income of a corporation doing business in two or more states.

Amortization of patents, Ely purchased a patent (with a remaining legal lif...

Ely purchased a patent (with a remaining legal life of ten years) from Backo on January 1, 2010 for $300,000. Ely expected to use the patent for five years. The carrying value on B

Annuity, An annuity is explained as stream of uniform duration cash flows. ...

An annuity is explained as stream of uniform duration cash flows. The payment of life insurance premium through the policyholder to the insurance company is an illustration of an a

Operating segments, Vincent Ltd operates solely in Western Australia and th...

Vincent Ltd operates solely in Western Australia and the chief operating decision maker has identified five operating segments: Mining, Insurance, Retailing, Manufacturing and Tran

Write Your Message!

Captcha
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