+1-415-670-9189
info@expertsmind.com
Gruner also incurs 7 sales commission 048 on each disc
Course:- Accounting Basics
Reference No.:- EM13601444




Assignment Help
Assignment Help >> Accounting Basics

Gruner Company produces golf discs which it normally sells to retailers for $6.89 each. The cost of manufacturing 17,300 golf discs is:

  • Materials $8,996
  • Labor 24,393
  • Variable overhead 18,857
  • Fixed overhead 33,908
  • Total $86,154

Gruner also incurs 7% sales commission ($0.48) on each disc sold.Travis Corporation offers Gruner $4.82 per disc for 4,700 discs. Travis would sell the discs under its own brand name in foreign markets not yet served by Gruner. If Gruner accepts the offer, its fixed overhead will increase from $33,908 to $38,718 due to the purchase of a new imprinting machine. No sales commission will result from the special order.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Brooks Co. purchases various investments in trading securities at a cost of $ 66,000 on December 27, 2013. (This is its first and only purchase of such securities.) At Decembe
Hulse's sales journal for January shows a total of $111,801 in the selling price column, and its one-column purchases journal for January shows a total of $76,291. Compute t
You invest $1,000 for five years at 5% simple interest at Bank 1. You invest $1,000 for five years at Bank 2 where interest at 5% is compounded annually. Compute the amounts
There are three partners in Stewart Enterprises: Stewart, Tedder and Armstrong. At the end of the year, the partners' capital accounts were in the ratio of 2:1:2, respecti
The fixed expenses are $66,000 per month. The expected monthly sales of each model are: Business, 1,300 units; Math, 800 units. Calculate the contribution margin ratio for t
Define debit and credit. How are assets, liabilities, common stock, retained earnings, revenues, expenses, and dividends affected (increased or decreased) by debits and by cre
Jerry recently was offered a position with a major accounting firm. The firm offered Jerry either a signing bonus of $23,000 payable on the first day of work or a signing bo
Higher educational levels have been linked to higher salaries, lower poverty, and even more likelihood of getting married -  Discuss the differences in the number of people f