Relevant costing-special orders

Assignment Help HR Management
Reference no: EM13817581

Problem: Relevant Costing - Special Orders - Strutt Company

Strutt Company, which manufactures robes, has enough idle capacity available to accept a special order of 10,000 robes at $8 a robe. A predicted income statement for the year without this special order is as follows:

Per Unit Total

Sales revenue $12.50 $1,250,000Manufacturing costs:Variable 6.25 625,000Fixed 1.75 175,0008.00 800,000Gross profit 4.50 450,000Marketing costs:Variable 1.80 180,000Fixed 1.45 145,0003.25 325,000Operating profit $ 1.25 $125,000If the order is accepted, variable marketing costs on the special order would be reduced by 25 percent because all of the robes would be packed and shipped in one lot. However, if the offer is accepted,management estimates that it will lose sales of 2,000 robes at regular prices.

Required: What is the net gain or loss from the special order?

Reference no: EM13817581

Branch of a large auto parts chain

Dalmar has worked for 22 years at a 40-employee branch of a large auto parts chain. Business has been very bad lately, and there are rumors of consolidation, reorganization,

Key talent and reduce turnover

Organizations today have adopted innovative measures to retain key talent and reduce turnover. These measures include dual-career paths and alternative or flexible work arra

Influence of power and leadership style on corporate culture

You must have a minimum of three scholarly sources, in addition to the textbook, and you must reference at least two articles that highlight the influence of power and leade

Purpose of the cave paintings

Paleolithic humans created many paintings deep within caves where no natural light exists. This week, you will explore the Caves of Lascaux and consider the purpose of the c

Understanding of the reading assignments

Demonstrate understanding of the reading assignments as well as the implications of new knowledge. The eight-page paper should integrate readings and class discussions into

Which has recently introduced a new pay system

Individual, Group, or Organizational performance and use the Internet to locate the website of a company which has recently introduced a new pay system. Then assess from the

Develop a high level performance management cycle plan

Develop a high level performance management cycle plan (4-5 pages). The plan should contain an introduction and conclusion that makes relevant connections to course objectiv

What categories of data are difficult or impossible to find

List at least FOUR sources you will use to obtain information about the firm's strengths, weaknesses, opportunities, and threats. Discuss what categories of the SWOT element

Reviews

Write a Review

 
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