(Answered) Question - delta company produces a single product the cost

Accounting

Question - Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company normal activity of 60,000 units per year is:

Direct materials $5.10

Direct labor $3.80

Variable manufacturing overhead $1.00

Fixed manufacturing overhead $4.20

Variable selling and administrative expense $1.50

Fixed selling and administrative expense $2.40

The normal selling price is $21 per unit. The company's capacity is 75,000 units per year. An order has been received from a mail-order house for 15,000 units at a special price of $14.00 per unit. The order would not affect regular sales.

1. If the order is accepted by how much will annual profits be increased or decreased? (The order will not change the company total fixed costs.)

2. Assume the company has 1,000 units of this product left over from last year that are inferior to the current model. The units must be sold through regular channels at reduced prices. What unit cost is relevant for establishing a minimum selling price for these units? Explain.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92582933
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - alpha corp was organized on january 2 2018

Question - Alpha Corp was organized on January 2, 2018. During the first year of operation, alpha issued 100,000 shares of $1 par value common stock at a price of $50 cash per share. On December 31, 2018, alpha reported ...

You are preparing golf clubs financial reports for june

You are preparing Golf Club's financial reports for June 2017, and the 30 June 2017 bank statement has just arrived with the balance of $29,930. Currently, Golf Club's Cash account shows a balance of $30,690. Additional ...

Question - assume the following is the stockholders equity

Question - Assume the following is the stockholders' equity section of the 2016 Merck & Co., Inc., balance sheet. Stockholders' Equity ($ millions 2016 Common stock, one cent par value; Authorized-5,400,000,000 shares; I ...

Question - during october a firm had the following

Question - During October a firm had the following transactions involving revenue and expense: Paid $1325 for rent October Provided services foe $3000 in cash Paid 300 for October phone service Provided service for 2150 ...

Question - on january 2 2017 alpha corporation issued 15000

Question - On January 2, 2017, Alpha Corporation issued 15,000 shares of $10 par value common stock for $15 per share. On July 1, 2017, Alpha reacquired 1,000 of these shares when they were trading $20 each. September 1, ...

Question in this case management is presented with several

Question: In this case, management is presented with several decision options. For this assignment, you are required to provide a two to three single-spaced written memo evaluating options and providing recommendations. ...

Question - garfield gunman purchased as a held-to-maturity

Question - Garfield Gunman; purchased, as a held-to-maturity investment, $80,000 of the 9%, 5-year bond on Chester Corporation for $70,086, which provides an 11% return. Prepare Garfield's journal entries for (a) the pur ...

Question - richard starts his own business in 2016 with

Question - Richard starts his own business in 2016 with $2,000 owner's capital. In 2016, he bought 10 textbooks at $1,000 and sold 5 of them at $600. There is no other transaction during 2016. What is the cost of goods s ...

Question using the readings about the differences between

Question: Using the readings about the differences between managers and leaders, and grounded in strategic planning, how can one take a leadership role in making yours a plan that works? The response must be typed, singl ...

Question - on january 1 2016 sinclair corp bought equipment

Question - On January 1, 2016, Sinclair Corp. bought equipment using a $10,000,000 zero-interest-bearing bond due on January 1, 2021. The prevailing rate of interest for a note like this on January 1, 2016 was 7%. What a ...

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

Recent Questions

Ask Accounting Basics Expert