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Special order pricing - Shorewood Shoes Company makes and sells a variety of leather shoes for children. For its current mix of different models and seizes, the average selling price and costs per pair of shoes are as follows:Item AmountPrice $20Costs:Direct materials $6Direct labor $4Variable manufacturing overhead $2Variable selling costs $1Fixed overhead $3Total Costs $16Shoes are manufacture in batch sizes of 100 pairs. Each bath required 5 machine hours to manufacture. The plant has a total capacity of 4,000 machine hours per month, but current monthly production consumes only about 80% of the capacity.A discount store has approached Shorewood to buy 10,000 pairs of shoes next month. It has requested that the shoes bear its own private label. Embossing the private label will cost Shorewood an additional $0.50 per pair. However, no variable selling costs will be incurred for fulfilling this special order.Determine the minimum (floor) price that Shorewood Shoes should charge for this order. What other considerations are relevant in this decision?
when one firm purchase other and take over its all assets.balance sheet of absorbed firm shows goodwill,should we goodwill as well?
Accrued liabilities show expenses or obligations incurred in the earlier accounting period but the payment for similar will be made in the subsequent period. In several cases where
Inventory, Supplies and Prepaid Expenses You can well understand the requirements for carrying inventory. So as to carry on operations unhindered we require to have sufficien
1. A country has the per-worker production function y t = 6 k t 0.5 where y t is output per worker and k t is the capital-labor ratio. The depreciation rate is 0.1 and t
A soft drink maker wants to expand into a neighboring country. They want the product bottled in that country to avoid political issues and to enhance the local image of the produc
Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full
Q. Is there barely one way to conduct fca? Ans. No. It is significant for each area to put the FCA process in perception with its waste management goals. Every community w
The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production c
formula for economic order quantity
what are the purposes of cost accounting information
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