Burns decides to accept the special order for 4400 units

Assignment Help Accounting Basics
Reference no: EM13586763

Burns Industries currently manufactures and sells 14,000 power saws per month, although it has the capacity to produce 29,000 units per month. At the 14,000-unit-per-month level of production, the per-unit cost is $52, consisting of $33 in variable costs and $19 in fixed costs. Burns sells its saws to retail stores for $74 each. Allen Distributors has offered to purchase 4,400 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs.

Assume that Allen Distributors offers to purchase the additional 4,400 saws at a price of $41 per unit. If Burns accepts this price, Burns' monthly gross profit on sales of power saws will:
Increase by $180,400.
Decrease by $145,200.
Increase by $35,200.

Decrease by $48,400.

Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least:

  • $19.
  • $52.
  • $74.
  • $33.

Burns decides to accept the special order for 4,400 units from Allen at a unit sales price that will add $92,400 per month to its operating income. The unit price Burns charging Allen is:

  • $33.
  • $54.
  • $52.
  • $74.

 

Reference no: EM13586763

Questions Cloud

A 12-pack of omni-cola mass 430 kg is initially at rest on : a 12-pack of omni-cola mass 4.30 kg is initially at rest on a horizontal floor. it is then pushed in a straight line
If 20 g of lithium metal reacts with 30 l of chlorine gas : if 2.0 g of lithium metal reacts with 3.0 l of chlorine gas at stp what mass of lithium chloride is
What magnitude of force is required to stretch the spring : a force of 160 n stretches a spring 0.050 m beyond its unscratched lengtha what magnitude of force is required to
On march 1 2013 beldon corporation purchased land as a : on march 1 2013 beldon corporation purchased land as a factory site for 60000. an old building on the property was
Burns decides to accept the special order for 4400 units : burns industries currently manufactures and sells 14000 power saws per month although it has the capacity to produce
What education would you need to provide the patient : write a 2 page documents minimum excluding title and reference page responding to the questions below. it is critical
On january 2 2009 porter corporation issued 30000 shares of : on january 2 2009 porter corporation issued 30000 shares of 6 cumulative preferred stock at 100 par value. on december
You mix 20 ml of 050 m cuno32 with 50 ml of 050 m ki and : you mix 2.0 ml of 0.50 m cuno32 with 5.0 ml of 0.50 m ki and collect and dry the cui precipitate. calculate the
Blimie corporation was organized on january 3 2012 blimie : blimie corporation was organized on january 3 2012. blimie was authorized to issue 50000 shares of common stock with

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Antivirus inc expects its sales next year to be 2500000

antivirus inc. expects its sales next year to be 2500000. inventory and accounts receivable will increase 480000 to

  Calculate the payback period

Prepare a capital budget for the Hot New Café with the net cash flows for this project over a 5-year period.

  Capital from treasury stock

On Dec.1 declared a $0.50 Per share cash dividend to shockholders of record on Dec.14, payable January 10, 2010. Why is cash and Paid in capital from Treasury stock, both debit?

  Nova manufacturing applies factory overhead to products on

nova manufacturing applies factory overhead to products on the basis of direct labor hours. at the beginning of the

  Percentage of receivables method

Why would you use the percentage of sales method for calculating doubtful accounts as opposed to the percentage of receivables method?

  Accumulated benefit obligation measures

The pension obligation on the basis of the plan formua applied to years of service to date and based on existing salary levels.

  Indicate the cost category

Indicate the cost category to which the item belongs - list of such costs and expenses

  X and y each have capital balances of 100000 and share net

yaro company owns 30 of the common stock of dew co. and uses the equity method to account for the investment. during

  Four acres of the farm are condemned by the state to widen

betty whose tax rate is 33 is in the business of breeding and racing horses. except for the transactions below she has

  Fomtech inc had net income of 750000 based on variable

fomtech inc. had net income of 750000 based on variable costing. beginning and ending inventories were 50000 units and

  What is corporate governance

What is Corporate governance and outline brief history of corporate governance - Prepare an essay on Corporate\IT governance and internal control.

  On december 1 martin company signed a 5000 3-month 6 note

1. on december 1 martin company signed a 5000 3-month 6 note payable with the principle plus interest due on march 1 of

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