User Account

All Pages

What will be the effect on profit of accepting the order

Assignment Help Managerial Accounting
Reference no: EM132747712

Question - Macaron produces a hard disk drive that sells for $172 per unit. The cost of producing 25,000 drives in the prior year was:

Direct material $725,000

Direct labor 450,000

Variable overhead 200,000

Fixed overhead 1,450,000

Total cost $2,825,000

At the start of the current year, the company received an order for 2,780 drives from a computer company in China. Management of Macaron has mixed feelings about the order. On one hand, they welcome the order because they currently have excess capacity. Also, this is the company's first international order. On the other hand, the company in China is willing to pay only $137 per unit.

Required - What will be the effect on profit of accepting the order?

Reference no: EM132747712

Questions Cloud

Describe being a transformative leader : What is the best way to describe being a transformative leader?
Should market penetration for kashmir leaf tea implemented : Should market penetration for Kashmir Leaf Tea be implemented at the functional level of the company? Yes or no.? Please provide reasons
Understanding of how to effectively lead : Apply a theoretical perspective from social work and a leadership style to demonstrate an understanding of how to effectively lead
Practical implications for motivating employees : How to make a Diagram the expectancy theory model and discuss its practical implications for motivating employees?
What will be the effect on profit of accepting the order : The company received an order for 2,780 drives from a computer company in China. What will be the effect on profit of accepting the order
Describe best-practice communication processes : Describe best-practice communication processes and methods in financial accounting
Briefly describe compliance requirements : Briefly describe compliance requirements, including relevant legislative(Australian) responsibilities
Summarize the importance of incorporating an understanding : In a brief one-sentence question, summarize the importance of incorporating an understanding of at least two criminological theories into the decisions.
Are employees more likely to favor defined contribution plan : In other words, at least one-half of your suggestions should not hurt the employee's pocket book. What alternatives do you want to explore, and why?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd