Determine what will be effect on profit of accepting order

Assignment Help Managerial Accounting
Reference no: EM132640199

Bellevue produces a hard disk drive that sells for $174 per unit. The cost of producing 25,000 drives in the prior year was:

Direct material $725,000
Direct labor 475,000
Variable overhead 225,000
Fixed overhead 1,475,000
Total cost $2,900,000

At the start of the current year, the company received an order for 3,040 drives from a computer company in China. Management of Bellevue has mixed feelings about the order. On one hand, they welcome the order because they currently have excess capacity. Also, this is the company's first international order. On the other hand, the company in China is willing to pay only $132 per unit.

Problem 1: What will be the effect on profit of accepting the order? (Enter decrease in profit using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Reference no: EM132640199

Questions Cloud

Compute the current yield and capital gains : Quiver Archery's bond currently is selling for $1,006; its value one year ago was $996. The bond has a $1,000 maturity value
How do find the dollar amount of the total depreciation : Determine the dollar amount of the total depreciation that will be contained in Cost of Goods Sold. Depreciation for the year amounted to $160,000: 30%.
Fair price for one of? cyberdyne zero coupon? bonds : The yield on the bond is 6?%. What is the fair price for one of? Cyberdyne's zero coupon? bonds?
What is the master-budget fixed manufacturing overhead : What is the master-budget fixed manufacturing overhead rate per wrench? What is the theoretical fixed manufacturing overhead rate per wrench?
Determine what will be effect on profit of accepting order : Compute What will be the effect on profit of accepting the order? (Enter decrease in profit using either a negative sign preceding the number e.g. -45)
What is the incremental net revenue : What is the incremental net revenue (i.e. change in revenue minus expenses) that will result from accepting this project?
Making decisions about accounts receivable : What factors must a financial manager consider when making decisions about accounts receivable?
Make an income statement that more accurately re?ects : Prepare an income statement that more accurately re?ects the division's profit performance. (Note: you may first construct it using all costs separated)
List some of the working capital management practices : List some of the working capital management practices you would expect to see in manufacturing company following just in time inventory practices.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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