Travis corporation offers gruner 484 per disc for 5300
Course:- Accounting Basics
Reference No.:- EM13601544

Assignment Help
Assignment Help >> Accounting Basics
  • Materials $10,896
  • Labor 33,369
  • Variable overhead 21,792
  • Fixed overhead 45,400
  • Total $111,457

Gruner also incurs 6% sales commission ($0.41) on each disc sold.

Travis Corporation offers Gruner $4.84 per disc for 5,300 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 $45,400 to $50,233 due to the purchase of a new imprinting machine. No sales commission will result from the special order.

Prepare an incremental analysis for the special order. (If answer is zero, please enter 0. Do not leave any fields blank. If amount decreases the income, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Enter all amounts in columns "Reject Order" and "Accept Order" as positive amounts and subtract where necessary.)

Reject Order Accept Order Net Income Effect

Revenues $ $ $
Variable overhead
Fixed Overhead
Sales commission

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
John considers the problem and suggests to you that to generate positive cash flows, the company could sell some of its accounts receivable and liquidate much of its raw mat
Which description best fits Chester in your industry? For clarity: - A differentiator competes through good designs, high awareness, and easy accessibility. - A cost leader co
on january 1 f the current year, feller corporation issued $3000000 of 10% debenture bonds on a basis to yield 9%,receiving $3134580. interest is payable annually on decembe
This amount represented funds borrowed on a six-month, 10 percent note from the firm's bank on December 1. Record the journal entry for interest expense on this note that sh
Quayle Corporation's inventory cost on its balance sheet was lower using first-in, first-out than it would have been using last-in, first-out. Assuming no beginning inventor
The credit card of a consumer pay an annual rate of 26% that is computed daily for advances or purchases. If this consumer bought a television for $999.00 and he took one ye
McCallister & Speass Plowing Company is completing the accounting process for the year ending December 31, 2009. The transactions during 2009 have been journalized and poste
But the three-night requirement does limit the utility of discounted fares for road warriors. What is a "road warrior"? Why would a company put restrictions on a service tha