Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

The GREEDY YODA Company has 3 divisions: Endor, Tatooine, and Hoth, information about the 3 divisions are as follows:
Endor: Capacity 40,000 units currently making and selling 28000 units at $400 each; cost of production $190 per unit
Tatooine: capacity 50,000 units currently making and selling 42,000 at $420 each, cost of production $250 per unit
Hoth: capacity 30,000 units currently making and selling 25,000 units at $450 each, cost of production $275 each.

Part 1: a) Determine the income of each division and the total profit for GREEDY YODA

b) GREEDY YODA has decided to award a $50,000 bonus. As his chief accountant you have been assigned to distribute the bonuses. How much does each division get? DEFEND YOUR ANSWER
At the beginning of the next year, Hoth got a new customer; HOTH-LIGHT-SABERS-R-US, who wants to purchase 12,000 units at $390 each. It will cost $90 to ship an item from Endor, $10 to ship from Tatooine and of course nothing to ship from Hoth.

Part 2: a) do you accept the order from HOTH-LIGHT-SABERS-R-US? Remember, your owner is ‘GREEDY YODA'.

b) if you accept the order, where do you produce the 12,000 units to be provided to HOTH-LIGHT-SABERS-R-US?

c) determine the income of each division and the new total profit to GREEDY YODA

d) GREEDY YODA is so excited about getting this new customer that he has decided to distribute $65000 in bonuses in this second year. (note: sales and production costs didn't change for any of the other customers of Endor, Hoth or Tatooine) How do you distribute bonuses this year?

DEFEND YOUR ANSWSER AND REMEMBER HOW YOU DISTRIBUTED BONUSES LAST YEAR.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92555139
  • Price:- $15

Priced at Now at $15, Verified Solution

Have any Question?


Related Questions in Accounting Basics

Question - morgan jennings a geography professor invests

Question - Morgan Jennings, a geography professor, invests $99,000 in a parcel of land that is expected to increase in value by 15 percent per year for the next ten years. He will take the proceeds and provide himself wi ...

Question - a few members in the circular club do not want

Question - A few members in the Circular Club do not want to continue with annual rodeo. However, Shelly is insistent the club must continue to conduct the rodeo as an annual fundraiser. Shellley aegues she has spent hun ...

Question - alison ltd after negotiations with darley ltd

Question - Alison Ltd, after negotiations with Darley Ltd, acquired all the assets (except Cash at Bank and Shares in Alison Ltd) and all liabilities of Darley Ltd. Alison Ltd issued 300,000 fully paid $1 shares and paid ...

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 - this is an accounting problem that appears on

Question - This is an accounting problem that appears on McGraw Hill. Please help with recording the advance collection and revenue earned on the general journal. The University of Michigan football stadium, built in 192 ...

Assignment -in this assignment you are asked to provide a

Assignment - In this assignment, you are asked to provide a summary of recent developments relating to financial reporting and prepare financial statement reports in accordance with accounting standard requirements. As s ...

Question you will write a 6-10-page research-based paper in

Question: You will write a 6-10-page research-based paper in current APA format that compares and contrasts the various business valuation approaches. The paper must include at least 4 professional/scholarly references i ...

Question - on december 31 2016 green company finished

Question - On December 31, 2016, Green Company finished consultation services and accepted in exchange a promissory note with a face value of $770,000, a due date of December 31, 2019, and a stated rate of 5%, with inter ...

Question - at the end of 2016 retained earnings for the

Question - At the end of 2016, retained earnings for the Baker Company was $2,550. Revenue earned by the company in 2016 was $2,800, expenses paid during the period were $1,500, and dividends paid during the period were ...

1 lsquoclassification of liabilities is based on the same

1. ‘Classification of liabilities is based on the same principles as the classification of assets.' Do you agree with this? Why or why not? 2. ‘Classification of liabilities as current or non-current is not that importan ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As