Question

In: Accounting

X company manufacture toasters. For the first 8 months of 2010, the company reported the following...

X company manufacture toasters. For the first 8 months of 2010, the company reported the following operating results while operating at 75% of plant capacity:

Sales (350,000 units) $4,375,000

Cost of goods sold $2,600,000

Gross Profit $1,775,000

Operating expenses $840,000

Net Income $935,000

Cost of goods sold was 70% variable and 30% fixed; operating expenses were 75% variable and 25% fixed. In september, X company receives a special order for 15,000 toasters at $7.6. Acceptance of the order would result in additional $3000 of shipping costs but no increase in fixed operating expenses.

a) prepare an incremental analysis for the special order

b) should x company accept the order? why or why not?

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following...
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,000 units) $4,379,000 Cost of goods sold: 2,605,000 Gross profit 1,774,000 Operating expenses 839,600 Net income $934,400 Cost of goods sold was 72% variable and 28% fixed; operating expenses were 82% variable and 18% fixed. In September, Moonbeam receives a special order for 19,100 toasters at $7.99 each from Luna Company of Ciudad Juarez....
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following...
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (341,600 units) $4,375,000 Cost of goods sold 2,610,800 Gross profit 1,764,200 Operating expenses 841,190 Net income $923,010 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 23,100 toasters at $7.85 each from Luna Company of Ciudad Juarez....
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following...
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,300 units) $4,370,000 Cost of goods sold 2,602,000 Gross profit 1,768,000 Operating expenses 839,500 Net income $928,500 Cost of goods sold was 77% variable and 23% fixed; operating expenses were 87% variable and 13% fixed. In September, Moonbeam Company receives a special order for 24,400 toasters at $8.38 each from Luna Company of Ciudad...
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following...
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,900 units) $4,373,000 Cost of goods sold 2,602,000 Gross profit 1,771,000 Operating expenses 839,800 Net income $931,200 Cost of goods sold was 74% variable and 26% fixed; operating expenses were 84% variable and 16% fixed. In September, Moonbeam Company receives a special order for 20,800 toasters at $8.48 each from Luna Company of Ciudad...
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following...
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,100 units) $4,377,000 Cost of goods sold 2,594,000 Gross profit 1,783,000 Operating expenses 839,400 Net income $943,600 Cost of goods sold was 67% variable and 33% fixed; operating expenses were 77% variable and 23% fixed. In September, Moonbeam Company receives a special order for 24,500 toasters at $8.38 each from Luna Company of Ciudad...
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following...
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (341,600 units) $4,370,000 Cost of goods sold 2,591,280 Gross profit 1,778,720 Operating expenses 836,920 Net income $941,800 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 15,000 toasters at $7.50 each from Luna Company of Ciudad Juarez....
Gloucester Ltd. manufactures specialized valves. For the first six months of 2015 the company reported the...
Gloucester Ltd. manufactures specialized valves. For the first six months of 2015 the company reported the following operating results. Amount Per unit Sales $4,000,000 $50.00 Cost of goods sold 3,200,000 40.00 Selling and administrative expenses     320,000 4.00 Net income   $480,000 $6.00 Fixed costs included in cost of goods sold in the period were $800,000; fixed costs included in selling and administrative expenses were $60,000. Gloucester recently received a special order from an overseas industrial customer, Brewery Supply Industries (BIS), for...
Gloucester Ltd. manufactures specialized valves. For the first six months of 2002 the company reported the...
Gloucester Ltd. manufactures specialized valves. For the first six months of 2002 the company reported the following operating results. Amount Per unit Sales $4,000,000 $50.00 Cost of goods sold 3,200,000 40.00 Selling and administrative expenses     320,000 4.00 Net income   $480,000 $6.00 Fixed costs included in cost of goods sold in the period were $800,000; fixed costs included in selling and administrative expenses were $60,000. Gloucester recently received a special order from an overseas industrial customer, Brewery Supply Industries (BIS), for...
Parker Manufacturers produces can openers. For the first six months of 2011, the company reported the...
Parker Manufacturers produces can openers. For the first six months of 2011, the company reported the following operating results while operating at 80% of plant capacity. Sales                                                   $4,000,000 Cost of goods sold                              2,500,000 Gross profit                                           1,500,000 Operating expenses                            1,000,000 Net income                                         $   500,000 Cost of goods sold was 70% variable and 30% fixed. Operating expenses were 70% variable and 30% fixed. In September 2011, Parker Manufacturers receives a special order for 15,000 can openers at $7.50 from a foreign company....
The controller of X Company estimates sales and production for the first four months of 2016...
The controller of X Company estimates sales and production for the first four months of 2016 as follows: January February March April Sales $30,200 $39,000 $55,000 $25,900 Production in units 1,010 1,670 2,140 2,510 Sales are 40% cash and 60% on account, and 60% of credit sales are collected in the month of the sale. In the month after the sale, 40% of credit sales are collected. It takes 4 kg of direct material to produce a finished unit, and...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT