+1-415-670-9189
info@expertsmind.com
Gruner also incurs 7 sales commission 048 on each disc
Course:- Accounting Basics
Reference No.:- EM13601522




Assignment Help
Assignment Help >> Accounting Basics

Gruner Co. produces golf discs which it normally sells to retailers for $6.92 each. The cost of manufacturing 20,100 disc is :

  • Materials $10,251
  • Labor 30,954
  • Variable overhead 20,301
  • Fixed overhead 39,396
  • 100,902

Gruner also incurs 7% sales commission ($0.48) on each disc. Travis Corporation offers Gruner $4.97 per disc for 5,800 disc. 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 $39,396 to 44,095 due to the purchase of a new imprinting machine. No sales commission will result from the special order.
Reject Accept order Net income.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Acquisition Costs of Realty Pollachek Co. purchased land as a factory site for $450,000. The process of tearing down two old buildings on the site and constructing the factory
How much gain or income will Ben recognize on his contribution of the land to the partnership? What is the character of any gain or income recognized?
The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability; re
Productivity. Many times trade-offs are necessary to increase productivity. What are important trades-offs involving the inputs to productivity? Your initial post should inc
Prepare the accounting entries for both lessor and lessee for the three years. What happens in Year 3 if residual value is only $8,000 and evaluate the differences between re
Acme's gross profit ratio increased by 20% over the prior year. Net sales and cost of goods sold for the prior year were $120,000 and $90,000, respectively. Cost of goods so
Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line me
Write three paragraphs for each scenario. Each paragraph should be 3-4 sentences long. Demonstrate that you have researched the cultures by providing 1-2 academic references