+1-415-670-9189
info@expertsmind.com
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 $ $ $
Materials
Labor
Variable overhead
Fixed Overhead
Sales commission




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
A not-for-profit organization receives a restricted gift. When and in which type of fund should it recognize the revenue? When and in which type of fund should it recognize th
A company issued 8%, 20-year bonds with a face amount of $72 million. The market yield for bonds of similar risk and maturity is 9%. Interest is paid semiannually. At what
Prepare a statement showing the incremental cash flows for this project over an 8-year period. Calculate the payback period (P/B) and the net present value (NPV) for the proje
Glen and Michael are equal partners in Trout Enterprises, a calendar year partnership. During the year, Trout Enterprises had gross income of $400,000 and operating expenses
Develop what you consider to be a more complete model of accounting qualitative characteristics, taking the best from the two existing frameworks and addressing deficiencies
Formulate a model for this problem. Specifically, do the following: Identify the decision variables (make sure that you specify the units for these variables). Specify the o
Flyaway Travel Company reported net income for 2009 in the amount of $90,000. During 2009, Flyaway declared and paid $2,125 in cash dividends on its nonconvertible preferred
Maintenance costs are $45,000 when 500 units are sold, and $46,000 when 600 units are sold. Using the high-low method, what are total maintenance costs when 520 units ar