Effect of accepting the special order

Assignment Help Financial Accounting

Reference no: EM1314574

Job costing - Accepting special orders

Assume Melville can sell 58,000 units of Pong to regular customers next year and sale of 6000 units to this special order customer will result in losing the contribution on sales to regular customers at the regular price due to the 60,000 unit maximum production capacity. If Mowen Company offers to buy the special order units at $65 per unit, the effect of accepting the special order on Melville's operating income next year should be a:
Choose one answer.

A. $36,000 increase.

B. $11,000 increase.

C. $192,000 increase.

D. $47,000 increase.

Reference no: EM1314574

Questions Cloud

Objective type question on bond yield and valuation : Objective type Question on Bond yield and Valuation and If the risk-free rate rises by 0.5% but the market risk premium declines by that same amount

What amount of overhead will be assigned to a unit of output : Calculation of Over heads to be assigned to a unit of output - what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?

Explaining full employment equilibrium : Illustrate (Draw the graph) the following events with AS and AD shifts. Start with the initial graph then add the change to either the AS or AD.

Random variable and probability density function : The random variable x is known to be uniformly distributed between 1.0 and 1.5.

Effect of accepting the special order : Effect of accepting the special order on Melville's operating income - Job costing - Accepting special orders

Find the effect of accepting the special order : Job costing - Accepting orders find the effect of accepting the special order on Melville's operating income for next year

Find the x intercept : Find the x intercept

Uniform distribution and random variable : The random variable x is known to be uniformly distributed between 1.0 and 1.5.

Computation of price level by cpi : Assume the government decides to pass a law that requires all businesses to delay all future layoffs, giving at least 3 months notice to any workers they plan to lay off.

User Account

All Pages