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Decision on Accepting Additional BusinessMiramar Tire and Rubber Company has capacity to produce 250,000 tires. Miramar presently produces and sells 200,000 tires for the North American market at a price of $40 per tire. Miramar is evaluating a special order from a South American automobile company, Rio Motors. Rio Motors is offering to buy 40,000 tires for $20 per tire. Miramar's accounting system indicates that the total cost per tire is as follows:Miramar pays a selling commission equal to 4% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $1.50 per tire. In addition, Rio has made the order conditional on Miramar Tire Company receiving a Brazilian safety certification. Rio estimates that this certification would cost Miramar Tire $20,000.When required, round all per unit answers to nearest cent. Enter all amounts as positive numbers.Hide a. Prepare a differential analysis report dated August 7, 2012, for the proposed sale to Rio Motors.Miramar Tire Company Proposal to Sell to Rio Motors August 7, 2012 Per Unit Total Differential revenue from accepting special offer mce_markernbsp;mce_markernbsp;Differential costs from accepting special offer: Direct materials mce_markernbsp;Direct labor mce_markernbsp;mce_markernbsp;Total differential costs mce_markernbsp;mce_markernbsp;b. What is the minimum price per unit that would be financially acceptable to Miramar? Round your answer to the nearest cent.$-How do I find the variable special offer product cost? Thanks
Peter Kalle Company had the following account balances at year-end: cost of goods sold $55,243; merchandise inventory $15,153; operating expenses $29,503; sales $105,181; sales discounts $1,273; and sales returns and allowances $1,546. A physical ..
Both the facility and the equipment will be depreciated over 12 years using the straight-line method and are expected to have zero salvage values. His required rate of return is 10%. Estimated annual net income and cash flows are $49,000 and $101,..
Squid reported net income of $100,000 for 2005. Minority interest income that will appear in the consolidated income statement for 2005 is
Please help with writing a research paper that examines an issue of current relevance to public policymaking.
Using this information, with all other information the same, determine the carrying value [book value] of the bonds at June 30 of the current year?
For 2009, PMD Inc. had set the following standards for production of metal tables: 35 pounds of iron at a standard cost of $2.60 per pound. During June the company produced 300 tables. The company bought 10, 625 pounds of iron at a cost of $25,500..
Determine the cost per CD assigned to each group using the relative sales value method.
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An asset purchased by A Corporation for $15,000 ON 01/01/1997 also incurred freight charges of $200 and installation cost of $1,000.The asset had a life expectancy of eight years and a salvage value of $2,800.
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Financial reporting for a special-purpose local government depends upon whether that government is engaged in governmental-type activities, business-type activities only, or fiduciary-type activities only.
When the General Fund budget for fiscal year 2011 is recorded, indicate whether each of the following accounts should be debited, credited, or not affected.
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