special orders, Managerial Accounting

Assignment Help:
Issa Company manufactures a personal computer designed for use in schools and markets it under its own label. Issa has the capacity to produce 25000 units a year but is currently producing and selling only 15000 units a year. the computers normal selling price is $1600 per unit with no volume discounts. The unit-level costs of the computers production are $600 for direct materials, $300 for direct labor and $120 for indirect unit-level manufacturing costs. The total product-and facility-level costs incurred by Issa during the year are expected to be $2,100,000 and $800,000, respectively. Assume that Issa receives a special order to produce and sell $3000 computers at $1200 each. Should she accept or reject the special order and why?

Related Discussions:- special orders

Directing, Directing There are number of good plans which are never rea...

Directing There are number of good plans which are never realized. To realize a plan it requires the initiation and   direction of the number of actions. Often, thes

Collection effort, The collection policy of a firm is intend at timely coll...

The collection policy of a firm is intend at timely collection of overdue amount and comprises of the subsequent. a.      Monitoring the state of debtors (account receivable)

Classification of costs, discuss which of the cost classification is suitab...

discuss which of the cost classification is suitable for LunchBreak LTD and why?

Determine the benefit of product life cycle costing, Benefit of product lif...

Benefit of product life cycle costing The benefits of product life cycle costing are summarized as follows: 1) The product life cycle costing results in earlier actions to g

Evaluate marginal cost, 1. If the marginal cost of producing a good is incr...

1. If the marginal cost of producing a good is increasing as a firm produces more of the good, then which of the following must be true? a. AFC is rising               b. AVC i

Decision making, A local government authority owns and operates a leisure c...

A local government authority owns and operates a leisure centre with numerous sporting facilities, residential accommodation, a cafeteria and a sports shop. The summer season lasts

What are the resons to use variance analysis, What are the Resons to use Va...

What are the Resons to use Variance analysis Variance analysis should be a continuous process for following reasons: 1) Labor rates, salary levels etc, changes due to union

Regression analysis, REGRESSION ANALYSIS A regression equation identifi...

REGRESSION ANALYSIS A regression equation identifies an estimated relationship between a dependent variable (the cost) and one or more independent variables (the cost driver).

Questions., how long will it take to get answers after question are submitt...

how long will it take to get answers after question are submitted

Write Your Message!

Captcha
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