Salisbury corporation has been producing and selling 30000

Assignment Help Accounting Basics
Reference no: EM13583058

Salisbury Corporation has been producing and selling 30,000 caps a year. The company has the capacity to produce 50,000 caps with its present facility. The following information is also available:

Selling price per unit:              $35

Variable cost per unit:

Manufacturing                        $14

Selling and Administrative      $6

Fixed costs in total:

Manufacturing                       $128,000

Selling and Administrative     $56,000

Gilbert Company has contacted Salisbury about purchasing 10,000 units at $24 each. A new customer who wants 20,000 units (all or nothing) right now also contacted Salisbury. Salisbury is wondering if they should sell to Gilbert Company or should take the offer by the new customer. Unfortunately, Salisbury cannot take both offers. For the new customer, variable selling and administrative costs would not be incurred. What is Salisbury's minimum price in order for them to accept the offer from the new customer (instead of Gilbert Company)?

Reference no: EM13583058

Questions Cloud

Suppose that sales are 30 percent higher than budgeted by : sharda company is considering two different processes to make its product - process 1 and process 2. process 1 requires
A company has 40 per unit in variable costs and 1200000 per : a company has 40 per unit in variable costs and 1200000 per year in fixed costs. demand is estimated to be 102000 units
What role does the media play in encouraging or : what role does the media play in encouraging or discouraging tourism to particular
The sample data appears to have a bell-shaped distribution : question 1 a psychologist has to develop a new test of spatial perception and she wants to estimate the mean score
Salisbury corporation has been producing and selling 30000 : salisbury corporation has been producing and selling 30000 caps a year. the company has the capacity to produce 50000
Which of the following schemes is a cryptosystem what is : which of the following schemes is a cryptosystem? what is the plaintext space the ciphertext space and the key space?a
Depreciation is computed by the straight-line method with : henkel corporation is considering two long-term capital investment proposals. relevant data on each project are as
Given that the mean of all 102 atomic numbers is 51794 and : question 1 as part of his review for a chemistry test a student randomly selects without replacement 40 out of 102
Then reverse the order of the encrypted string determine : a string over a finite set sum is a finite sequence of elements from sum. show that the following procedure defines a

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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