Prepare an incremental analysis for the special order

Assignment Help Managerial Accounting
Reference no: EM133059223

Question - Zulu sport inc. manufacturers basketballs for womens national basketball association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and production 120,000 units.

Amount

Sales 4,800,000

Cost of goods sold 3,600,000

Selling and administrative expenses 405,000

Net income 795,000

Fixed costs for the period were costs of goods sold $960,000, and selling and administrative expenses $225,000

In July, normally a slack manufacturing month, Zips sports received a special order for 10,000 basketballs at $28 dollars each from Greta basketball association. Acceptance for the order would increase variable selling & administrative expenses $0.75 per unit because of shipping costs but would not increase fixed cost and expenses.

Prepare an incremental analysis for the special order.

Should Zulu sports inc accept the special order, explain.

What is the minimum seeking price on the special order to provide net income of $5.00 per ball?

What non-financial factors should the management consider in making its decision?

Reference no: EM133059223

Questions Cloud

What is team psychology safety : How has your class team used cooperation to improve team trust? How could your class increase its team trust? What is Team Psychology Safety?
Determine the cost per equivalent unit of conversion : Dorchester uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March
Building construction projects : Explain why IT projects are less likely to be delivered on time and within budget than large building construction projects
Explain the purpose of a retention cycle : Explain the purpose of a retention cycle and the maintenance tasks involved. Distinguish the differences between active, inactive, and closed files
Prepare an incremental analysis for the special order : Fixed costs for the period were costs of goods sold $960,000, and selling and administrative expenses $225,000. Prepare an incremental analysis
Claims to environment friendliness-environmental statutes : Identify one environmental law that is relevant to your past, current, or future employer.
What is the expected return of the portfolio : The risky portion of the portfolio has an expected return of 15.00% and the standard deviation is 27.00%. What is the expected return of the portfolio
Time management tool : How did the Time Management tool you chose help you be more effective, less overwhelmed in your job, school work, and/or life?
What asymmetric information-moral hazard : Your focus will be to think through what asymmetric information, moral hazard, and adverse selection have to do with hiring a police officer.

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