What acceptance of special order would affect net income

Assignment Help Managerial Accounting
Reference no: EM132517065

Question 1: Sunland Company manufactures a product with a unit variable cost of $100 and a unit sales price of $186. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $120 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

Income would decrease by $28000.

Income would increase by $20000.

Income would increase by $28000?

Income would increase by $120000.

Reference no: EM132517065

Questions Cloud

Create hypothetical business : You are interested in and create a hypothetical business, developing a cyber security program for a small- to medium-sized business.
What was net income for kohl : During fiscal 2016, Kohl's had sales of $18,686 million, Cost of merchandise sold of $11,944 million, What was net income for 2016?
Future of iot and the security implications : Explain your thoughts on the future of IoT and the security implications.
Prepare the journal entries to correct the accounting error : Carla Company discovered an error in its accounting records in 2021. Prepare the journal entries to correct the accounting error
What acceptance of special order would affect net income : If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income.
Prepare Dody journal entry to correct the error : Prepare Dody's 2020 journal entry to correct the error and record 2020 depreciation. Assume income was reported accurately for tax purposes in all years
What is the net total dollar disadvantage of purchasing : List three qualitative characteristics that the owner of Outdoor Flames should consider in looking at the long-term effect of purchasing.
What is community policing : What is community policing? How does it differ from what some might call traditional policing? What are examples of community policing in your community?
Determine the deficit of the pension plan at January : Determine the deficit of the pension plan at January 1, 2020, and calculate its December 31, 2020 deficit balance directly

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