Explaining facility-level selling costs

Assignment Help Other Subject
Reference no: EM1340055

Q1) A production costs summary for Comapny A is as follows:

Unit-level direct material $ 5.00/unit
Unit-level direct labor 2.00/unit
Unit-level overhead 6.00/unit
Product-level overhead 4.00/unit
Total cost per unit $17.00

Fixed facility-level selling costs are $600,000 per year and unit-level selling costs are $2. The unit-level selling costs consist primarily of shipping and packaging costs. Production capacity is 400,000 units, but Davidson only expects to produce (and sell) 250,000 units next year. The normal selling price of the product is $30 per unit. A merchant has made an offer to purchase 50,000 units at $24 each.

The relevant incremental cost per unit associated with the special order is how much?
If Company A accepts a special offer, profitability will either increase or decrease and how much?
Is any of these statements true:
The facility-level selling costs are relevant to the special offer decision.
The product-level production costs are relevant to the special offer decision.
The unit-level selling costs are not relevant to the special offer decision.

Reference no: EM1340055

Previous Q& A

  Assume that you test the linder hypothesis by comparing

Assume that you test the Linder hypothesis by comparing Germany's absolute difference in per capita income from each of its trading.

  A plasmid dna that was also cut with ecor i

The restriction enzyme ECOR I cuts DNA leaving 5' overhangs, Pst I leaves 3' overhangs after cutting DNA and SMA I leaves blunt ends on the fragments it produces.Indicate wheter DNA ligase can join the pieces of DNA.

  Explain how many tonnes of wheat and how many tonnes

Explain how many tonnes of wheat and how many tonnes of copper ingots will be produced if each country specializes.

  Explain explanation of the four foundations of law

Explain Explanation of the Four Foundations of Law and What are the four foundations of law which are exercised globally

  Assurance of satisfactory contract completion

If you were the project manager, how would you handle this situation? How can a customer be assured of satisfactory contract completion?

  What is the total length of uncut dna molecule

sketch a diagram of the circular DNA molecule, showing the locations of the restriction sites for Ecor I and BamH I , as well as distances between them.

  Why can not one nation have a comparative advantage

Why can not one nation have a comparative advantage over another country in the production of everything if the first country has excellent natural resources

  Purpose behind patrick henry actions

I do not understand what it is that Patrick Henry wanted from his fellow Virginians. What was his purpose behind his actions? How did Henry deal with those who did not agree with what he wanted?

  Differences in the kinds of dna sequences represented

Would you expect any differences in the sizes of the inserts in the two libraries? in brief explain.

  Computing total and free floats for the activities

Develop a network diagram and find the critical path. Compute the total and free floats for the activities.


Write a Review


Similar Q& A

  Influencing media-confirmation bias

Is the influence of the media on biases diluted considerably due to a phenomenon termed as confirmation bias.

  Protecting individuals from non-state actors

Who is responsible for the protection of human rights?

  Prosecutor forbes exercises

After the jury verdict is announced, Prosecutor Forbes is questioned by the local media concerning his exercise of the peremptory challenges.

  Regarding third party liability

Explain what legal rights, if any, Sally has as to this contract for the car. Discuss specific points of third party liability laws.

  Criminal justice for juvenile

Older citizens report less victimization than teens. What reasons could help account for such a wide disparity in victimization? Explain.

  Role of three levels of government legislation

Define and discuss how the roles of the three levels of government legislation differ in the criminal justice policy process.

  Creativity and insight

In brief explain one or two creative solutions to the problem.

  International law related to the nautical territory

Should the United States become a party to UNCLOS III by accession? What are the arguments both for and against becoming a party? Which arguments are better, and why?

  How do you know that cutting the price of roundup

Thi is a small case study about the price mechanism and demand related to price.  How do you know that cutting the price of Roundup was a good ideafor Monsanto?

  Define the term environmental impact assessment

The evaluation of Environmental Impact Assessment (EIA) systems is a highly recommended strategy for enhancing their effectiveness and quality. Define the term Environmental Impact Assessment' and critically analyze the weaknesses of the EIA proce..

  Discuss the importance of nutrition

Discuss the importance of the following for the food service industry: (i) Hygiene (ii) Nutrition

  Mission statement for prison facility

Could you help me form a Mission statement for a prison facility that I am creating for a project?

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