What effect would accepting the order have

Assignment Help Accounting Basics
Reference no: EM131265072

Miyamoto Jewelers is considering a special order for 10 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $389.95 and its unit product cost is $264 as shown below.

Direct Materials ............................................$143.00
Direct Labor.................................................... 86.00
Manufacturing Overhead............................. 35.00
Unit Product Cost..........................................$264.00

Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $7 of the overhead is variable with respect to the number of bracelets produced. The customer who is interested in the special bracelet order would like special filigree applied to the bracelets. This filigree would require additional material costing $6 per bracelet and would also require acquisition of a special tool costing $465 that would have no other use once the special order is completed. This order would have no effect on the company's regular sales and the order could be fulfilled using the company's existing capacity without affecting any other order.

Required:

What effect would accepting this order have on the company's net operating income if a special price of $349.95 is offered per bracelet for this order? Should the special order be accepted at this price?

Reference no: EM131265072

Questions Cloud

Organizational efficiency guided evolution of management : Describe how the need to increase organizational efficiency guided the evolution of management theory. What is meant by scientific management? What are the four principles of scientific management described by Frederick W. Taylor?
What is annual break-even point in dollar of parking revenue : Draw a cost-volume-profit graph for stop-n-shop on an annual basis. What is the contribution margin ratio? What is the annual break-even point in dollars of parking revenue?
Differences in super-variable costing and absorption costing : All differences between super-variable costing and absorption costing are explained by:
Write an e mail to employees : As a member of the Human Resources staff, write an e-mail to employees asking them to choose between continuing the current companywide uniform floating holiday or instituting a new plan for an individual floating holiday.
What effect would accepting the order have : What effect would accepting this order have on the company's net operating income if a special price of $349.95 is offered per bracelet for this order? Should the special order be accepted at this price?
Prepare the journal entry to record impairment of the asset : Presented below is information related to equipment owned by Carpenter Company at December 31, 2014. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014. Prepare the journal entry (if any) to record depreciat..
What dollar value per year would intangible benefits have : What dollar value per year would the intangible benefits have to have in order to make the equipment an acceptable investment?
How to receive successful placements : These data appear in the accompanying tables. Based on the data, how should the MPA director advise students about how to receive successful placements?
Explain how clearly you as the reader can see the connection : Respond to at least one of your colleagues' posts and reflect on their data analysis. Explain how clearly you as the reader can see the connections between codes, categories, and themes. In your response, include more examples of your work to comp..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate depreciation expense and book value

On January 1, 2009, Boston Company purchased a heavy duty machine having an invoice price of $13,000; Boston paid transportation and installation costs totaling $3,000. The machine is estimated to have a 4-year useful life and a $1,000 residual va..

  Problem regarding the defect monitoring

Defect monitoring. The following data are from a production process that makes 250 units each hour. The data were collected over a normal 12-hour shift one day. The data are shown in the table at the right. Using the first 10 hours as the calibrat..

  Power serve company expects to operate at 85 of productive

power serve company expects to operate at 85 of productive capacity during april. the total manufacturing costs for

  Management of modugno corporation is considering whether to

management of modugno corporation is considering whether to purchase a new model 370 machine costing 441000 or a new

  Thousands of stockholders lost millions

After the scandal was uncovered, thousands of stockholders lost millions of dollars as Enron share values plummeted."

  Explain the effects of the disposal of an asset.

Problem E8-14: Recording the Disposal of an Asset at Three Different Sales Prices Marriott International is a worldwide operator and franchisor of hotels and related lodging facilities totaling over $1.4 billion in property and equipment.

  What is the consolidated balance for the equipment account

Parrett had equipment with a book value of $250,000 and a fair value of $400,000. Jones had equipment with a book value of $170,000 and a fair value of $320,000. What is the consolidated balance for the Equipment account as of December 31, 2013..

  Explain how the cost of capital serves as a screening tool

explain how the cost of capital serves as a screening tool when dealing with the net present value method and the

  A business purchases land and a building

Indicate the best answer for each question in the space provided. A business purchases land and a building, giving in exchange a note payable for $75,000. This transaction:

  Casual comfort textiles corporation began january with a

casual comfort textiles corporation began january with a budget for 30000 hours of production in the weaving

  Prepare a report for your client

BUACC5930 Accounting Concepts and Practices Assignment. Prepare a report for your client. Your report should include:  A description of the core business of the company including full details of its operating activities. A discussion on the company's..

  Income statement for marsh corporation

1. Prepare an income statement for Marsh Corporation. 2. Prepare a retained earnings statement for Marsh Corporation.

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