The tray company has offered to sell 20000 units of part no

Assignment Help Accounting Basics
Reference no: EM13592555

The Reno Company Manufactures part no. 498 for use in its production cycle. The cost per unit for 20,000 units of part no. 498 is as follows

  • Direct Materials$6
  • Direct Labor30
  • Variable Overhead12
  • Fixed Overhead16

The tray company has offered to sell 20,000 units of part no. 498 to reno for $60 per unit. Reno will make the decision to buy the part from Tray if it produces a net incremental benefit of $25,000 for reno. If reno accepts Tray's offer $9 per unit of the fixed overhead applied would be totally eliminated. Futhermore, Reno has determined that the released facilites could be used to save relevant costs in the manufacture of part no. 575.How much savings must be attained in the production of part 575 inorder to produce a net increamental benefit of $25000?

Reference no: EM13592555

Questions Cloud

Dans taxable income falls in the 15 tax bracket included : dans taxable income falls in the 15 tax bracket. included in his taxable income is 5000 of ordinary dividends of which
Cmpute the total period cost for cotton white omit the : cotton white inc. makes specialty clothing for chefs. the company reported the following costs for 2010. factory
The school will sell the stock and use the proceeds to : elp corporation donates the following property to page middle schoolmiddot computer equipment purchased one year ago at
A solution containing sodium fluoride is mixed with one : a solution containing sodium fluoride is mixed with one containing calcium nitrate to form a solution that is 0.015m
The tray company has offered to sell 20000 units of part no : the reno company manufactures part no. 498 for use in its production cycle. the cost per unit for 20000 units of part
Find the ph of the resulting solution when 2000ml of a : find the ph of the resulting solution when 20.00ml of a 0.1000m triethylamine ch3ch23n kb 5.2x10-4 solution is
Speedy print makes advertising hangers that are placed on : speedy print makes advertising hangers that are placed on doorknobs. it charges 0.04 and estimates its variable cost to
Get real inc recently switched to activity-based costing : get real inc. recently switched to activity-based costing from the department allocation method. the fabrication
Suppose cardinal wants to earn 20000 this year determine : cardinal castles inc. makes one type of birdhouse that it sells for 30 each. its variable cost is 14 per house and its

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the cost of purchasing the equipment

Thomas Corporation is evaluating whether to lease or purchase equipment. Its tax rate is 30 percent. The company expects to use the equipment for 5 years, with no expected salvage value.

  Process to increase company net income

Disney's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase? and what is the process?

  Computing total dollar return and rate of return

If Michelle purchased 100 shares of Home Depot common stock at the beginning of January for $25. She received a $1.25 dividend payment from the company at the end of December. At that time, the stock was selling for $27.50 per share. What is the d..

  The president believes that diversity in accounting

at the completion of the darby department store audit the president asks about the meaning of the phrase in conformity

  Computing the adjusted basis of property

Identify and describe the general formula for calculating the adjusted basis of property.

  Collects cash from the buyer''s installment payments

Collects cash from the buyer's installment payments.

  In february one of the processing departments at carpentier

in february one of the processing departments at carpentier corporation had beginning work in process inventory of

  Given that the land has not actually been used in the

your client alternate fuel inc. a regular corporation owns three sandwich shops in the philadelphia area. in 2011 the

  The december 31 2009 balance sheet of schism inc showed

the december 31 2009 balance sheet of schism inc. showed long-term debt of 1.450 million 150000 in the common stock

  Prepare a new segmented income statement for the company

marple associates is a consulting firm that specializes in information systems for construction and landscaping

  Suppose allen inc is a publicly traded company in the

suppose allen inc. is a publicly traded company in the united states. the company purchased a piece of land for

  Variable interest in a variable interest entity

An enterprise that holds a variable interest in a variable interest entity (vie) is required to consolidate the assets, liabilities, revenues, expenses, and noncontrolling interest of that entity if:

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