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
The subsequent two spreadsheets provide workload (expressed as relative weighted products (RWPs) for inpatient care), revenue, and expense data for Schumpert Medical Center
Goodwill had been impaired by 10% in the first year following the acquisition. During the year to 30 June 2014 it was considered that the goodwill had been further impaired
If government economic policies meant to stimulate economic growth result in the annual growth rate increasing to 2.2 percent, how many years will it take for real GDP per c
Prepare an income statement for the month of June, Prepare a balance sheet at June 30,2010 - Show the effects of the previous transactions on the accounting equation using the
There are several key elements required in a physician's contract with an Managed Care Organization (MCO). Research and describe the major components included in a physician
A bond has an 6.25% coupon rate, maturing 4 Years from now. To buy this bond, you must invest $1,025 today. What will your return on investment (yield) be? Approximate yi
What is the purpose of depreciation? Does the book value of a fixed asset, cost minus accumulated depreciation, communicate to a user what the asset is worth? Should the fin
Demonstrates a situation in which a company's net profits appeared good in the statements, but the gross or operating profits presented a different picture. Discuss how this