Ask Question, Ask an Expert


Ask Accounting Basics Expert

Q1) Maui Juda Sunglasses sell for about %154 per pair.  Assume company acquires average costs per pair which is given below:


Direct Materials


Direct labor


Variable manufacturing overhead


Variable marketing expenses


Fixed manufacturing overhead


Total costs



$2,200,000 total fixed manufacturing overhead/137,500 pairs of sunglasses


Maui Juda has sufficient idle capacity to accept one-time-only special order from LA Glasses for 19,000 pairs of sunglasses at $59 per pair.  Maui Juda won't acquire any variable marketing expenses for order.




a) How would accept order affect Maui Juda's operating income? Additionally to special order's effect, what other (long-term, qualitative) factors must Maui Juda's managers consider in deciding whether to accept order?


b) Maui Juda's marketing manager, Jim Revo, argues against accepting special order as the offer price of $59 is less than Maui Juda's $74 cost to make sunglasses.  Revo asks you, as one of Maui Juda's staff accountants, to describe whether his analysis is right.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916870

Have any Question? 

Related Questions in Accounting Basics

Assignment - review of current accounting issuestask -in

Assignment - Review of Current Accounting Issues Task - In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues a ...

The president of coopie awards was analyzing the actual and

The president of Coopie Awards was analyzing the actual and budgeted results of operations for the current year. She noticed several favorable variances and, in a meeting gave accolades to the production manager. She als ...

During the year mr ashok sold his private car for 50000 and

During the year mr. ashok sold his private car for 50000 and this amount invested in business he withdraw from business 1500 per month up to july 31st 2011 and thereafter 4500 per month as Drawing you are required to pre ...

A are the amounts at which fixed assets are reported in the

A. Are the amounts at which fixed assets are reported in the balance sheet their approximate market values as of the balance sheet date? Discuss. B. (a) Under what conditions is the use of an accelerated depreciation met ...

Big alrsquos pizza emporium a subsidiary of big alrsquos

Big Al’s Pizza Emporium, a subsidiary of Big Al’s Pizza, Inc., has decided to sell frozen pizzas in its restaurants. Restaurant customers will take these pizzas home and cook them. The restaurants will sell frozen meat p ...

Valuation of accounts receivablesbulldiscuss the primary

Valuation of Accounts Receivables • Discuss the primary advantages and disadvantages of applying the direct write-off and the allowance method of writing off accounts. Even though the direct write-off method is not accep ...

Question 1you are a licensed cpa who is a member of both

Question #1 You are a licensed CPA who is a member of both the AICPA and the Oregon Society of CPAs. You work in the Tax Compliance Department of a major publicly traded supermarket chain. The company is considering whet ...

Actual revenues and expenditures reported on a budget and

Actual revenues and expenditures reported on a budget and actual comparison schedule should be prepared on the same basis as budgeted revenues and expenditures, even if a cash basis is used.?? Do you agree with this stat ...

During the third year of operations big alrsquos estimates

During the third year of operations, Big Al’s estimates that 415,000 pizzas (385,000 meat and 30,000 veggie) will be produced. Direct material costs per unit are $.74 per meat pizza and $.62 per veggie pizza. Direct labo ...

Assignmentnbsp question 1consolidation of wholly owned

Assignment   Question 1 Consolidation of wholly owned subsidiary, pre-acquisition equity and BCVR entries for assets and liabilities Lisa Ltd acquired all the issued shares of Kam Ltd on 1 January 2016 for $88 000. At th ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate