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Gruden Company produces golf discs which it usually sells to retailers for $7.23 each. The cost of manufacturing 16,600 golf discs is: Materials $8,466 Labor 24,070 Variable overhead 16,600 Fixed overhead 33,034 Total $82,170 Gruden also incurs 8 percent sales commission ($0.58) on each disc sold.
McGee Corporation offers Gruden $5 per disc for 5,000 discs. McGee would sell discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed overhead will increase from $33,034 to $38,872 due to purchase of a new imprinting machine. No sales commission will result from special order. Create an incremental analysis for the special order. Reject Order Accept Order Net Income/Increase/(Decrease) Revenues $ $ $ Materials Labor Variable overhead Fixed overhead Sales commissions Net income
Evaluate the annual net cost savings promised by the new etching machine.
Evaluate how could the foreign competitors profitably sell a similar product for less than manufacturing costs to Houston Electronic and what advice do you have for the president concerning the HE Versatile CVD?
Principal business activity is plumbing installation and repair and its business code number is 238220. It files its income tax returns on this calendar-year basis.The partnership requires maximizing its cost recovery deductions for tax purposes
Evaluate the total Gross estate and determine the total gross deductions?
Evaluate the average markup percentage for setting prices as a percentage of the full cost of the product.
Use the absorption costing approach to evaluate the markup required to make the desired return on investment based on the subsequent information.
Post the journal entries to general ledger accounts. and Prepare a trial balance at November 30.
As an operating tool, cash flow statement gives information about cash generated from operating activities and explanations for the difference between cash from operations and net profit.
Evaluate the slope then explain what it means in terms of the rate of change of the dependent variable per unit change in the independent variable.
Evaluate the markup of currently used and evaluate the two new rates, one for class A repairs and another for class B repairs, using the similar markup of x that you determined in part a.
Prepare any essential journal entry or entries
The records of Andrews Company reflect the subsequent data -Work in process, starting of the month - 4,500 units; 1 / 3 completed at a cost of $2,400 for materials, $825 for labor, and $5,000 for overhead.
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