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In: Accounting
"MBACO" has an annual production capacityof 20,000 units. The costs associated with the production and sale...
"MBACO" has an annual production capacityof 20,000 units. The costs associated with the production and sale of the company's product are given below: LE 15 Per unit variable manufacturing cost 100,000 Total fixed manufacturing cost 5 Per unit variable selling and administrative cost (Include sales commissions 10% of sales) 60,000 Total fixed selling and administrative cost The company presently is selling 15,000 units annually at a selling price of LE 30 each. A special order has been received from a distributor who wants to purchase 5,000 units at a special price. Regular sales would not be affected by this order and the order could be filled without any impact on total fixed costs. Sales commissions per unit on the special order would be reduced by 50%. If the special sales order is accepted the company expects to achieve net profit LE 22500 from the regular sales and special sales order. Required: 1- Prepare a detailed income statement if the special sales order is accepted. 2- What are the necessary conditions to accept or reject this special sales order?
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ekkarill92 answered 1 year agoRelated Solutions
Question No. One "MBACO" has an annual production capacity of 20,000 units. The costs associated with...
Question No.
One
"MBACO" has an
annual production capacity of 20,000 units. The costs associated
with production and sale of the company's product are given
below:
Manufacturing
costs:
LE
Per unit variable
12
Per unit fixed
5
Selling and
administrative costs:
( Include sales
commissions 4% of sales)
3
Per unit Fixed
3
The company presently
is selling 15,000 units annually at a selling price of LE 25 each.
A special order has been received from a distributor who wants...
Appliance Apps has the following costs associated with its production and sale of devices that allow...
Appliance Apps has the following costs associated with its
production and sale of devices that allow appliances to receive
commands from cell phones.
Beginning Inventory
0
Units Produced
24,000
Units Sold
19,200
Selling Price per Unit
$146
Variable Sales and Administration Expenses
$4
Fixed Sales and Administration Expenses
$936,000
Direct Material Cost per Unit
$26
Direct Labor Cost per Unit
$10
Variable Manufacturing Overhead Cost per Unit
$2
Fixed Manufacturing Overhead Cost per Month
$938,400
Prepare an income statement under...
Appliance Apps has the following costs associated with its production and sale of devices that allow...
Appliance Apps has the following costs associated with its
production and sale of devices that allow appliances to receive
commands from cell phones.
Beginning Inventory
0
Units Produced
26,000
Units Sold
20,800
Selling Price per Unit
$145
Variable Sales and Administration Expenses
$4
Fixed Sales and Administration Expenses
$1,014,000
Direct Material Cost per Unit
$25
Direct Labor Cost per Unit
$10
Variable Manufacturing Overhead Cost per Unit
$3
Fixed Manufacturing Overhead Cost per Month
$1,016,600
Prepare an income statement under...
Appliance Apps has the following costs associated with its production and sale of devices that allow...
Appliance Apps has the following costs associated with its
production and sale of devices that allow appliances to receive
commands from cell phones.
Beginning Inventory
0
Units Produced
26,000
Units Sold
20,800
Selling Price per Unit
$144
Variable Sales and Administration Expenses
$4
Fixed Sales and Administration Expenses
$1,008,800
Direct Material Cost per Unit
$25
Direct Labor Cost per Unit
$10
Variable Manufacturing Overhead Cost per Unit
$3
Fixed Manufacturing Overhead Cost per Month
$1,016,600
Prepare an income statement under...
Harris Company has a current production level of 20,000 units per month. Unit costs at this...
Harris Company has a current production level of 20,000 units
per month. Unit costs at this level are:
Direct materials
$0.25
Direct labor
0.40
Variable overhead
0.15
Fixed overhead
0.20
Marketing - fixed
0.20
Marketing/distribution - variable
0.40
Current monthly sales are 18,000 units. Jimi Company has
contacted Harris Company about purchasing 1,500 units at $2.00
each. Current sales would not be affected by the one-time-only
special order, and variable marketing/distribution costs would not
be incurred on the special order....
Kobe Company manufactures a part for its production cycle. The costs per unit for 20,000 units...
Kobe Company manufactures a part for its production cycle. The
costs per unit for 20,000 units of this part are as follows:
Direct materials $15
Direct labor 12
Variable factory overhead 20
Unavoidable fixed factory overhead 18
Total cost $65
The Kobe Company has been approached by a supplier who claims it
can sell Kobe Company 20,000 units of the same part for
$940,000.
Required:
a. Assuming there is no alternative use for the facilities, how
much money would Kobe...
RTI Company’s master budget calls for production and sale of 18,200 units for $83,720, variable costs...
RTI Company’s master budget calls for production and sale of
18,200 units for $83,720, variable costs of $32,760, and fixed
costs of $20,000. During the most recent period, the company
incurred $32,200 of variable costs to produce and sell 20,000 units
for $85,200. During this same period, the company earned $25,200 of
operating income.
Required:
1. Determine the following for RTI Company: (Do not
round intermediate calculations. Round your answers to the nearest
whole dollar.)
a. Flexible-budget operating income.
b....
RTI Company’s master budget calls for production and sale of 18,100 units for $81,450, variable costs...
RTI Company’s master budget calls for production and sale of
18,100 units for $81,450, variable costs of $30,770, and fixed
costs of $18,000. During the most recent period, the company
incurred $34,100 of variable costs to produce and sell 18,000 units
for $84,000. During this same period, the company earned $23,000 of
operating income.
QUESTIONS:
1. Determine the following for RTI Company: (Do not
round intermediate calculations. Round your answers to the nearest
whole dollar.)
a. Flexible-budget operating income.
b....
RTI Company’s master budget calls for production and sale of 19,300 units for $98,430; variable costs...
RTI Company’s master budget calls for production and sale of
19,300 units for $98,430; variable costs of $44,390; and fixed
costs of $18,600. During the most recent period, the company
incurred $33,300 of variable costs to produce and sell 18,600 units
for $86,300. During this same period, the company earned $26,300 of
operating income. (Do not round intermediate calculations.
Round final answer to the nearest whole dollar.)
Required:
1.
Determine the following for RTI Company:
a.
Flexible-budget operating income.
b....
Overton Company has gathered the following information: Production: Units in beginning work in process 20,000 Units...
Overton Company has gathered the following information:
Production:
Units in beginning work in process 20,000
Units started into production 164,000
Units in ending work in process 24,000
Percentage complete in ending work in process:
Conversion costs 60%
Materials 100%
Costs:
Direct materials $ 101,200
Direct labor 164,800
Overhead 184,000
Instructions:
to. Calculate the equivalent units of production for the
material and the conversion costs.
b. Determine the unit cost of production.
C. Show the allocation of costs to the units...
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