Sato Awards has had a request for a special order of 10 silver-plated trophies from the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sato Awards has had a request for a special order of 10 silver-plated trophies from the provincial tennis association. The normal selling price of such a trophy is $337.50 and its unit product cost is $225.00, as shown below: Direct materials Direct labour Manufacturing overhead Unit product cost $130.00 80.00 15.00 $225.00 Most of the manufacturing overhead is fixed and unaffected by variations in how many trophies are produced in any given period. However, $3 of the overhead is variable, depending on the number of trophies produced. The customer would like a special logo applied to the trophies requiring additional materials costing $2 per trophy and would also require acquisition of a special tool costing $450 that would have no other use once the special order was completed. This order would have no effect on the company's regular sales, and the order could be filled using the company's existing capacity without affecting any other order. Required: a. What effect would accepting this order have on the company's operating income if a special price of $307.50 is offered per trophy for this order? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net operating income by Sato Awards has had a request for a special order of 10 silver-plated trophies from the provincial tennis association. The normal selling price of such a trophy is $337.50 and its unit product cost is $225.00, as shown below: Direct materials Direct labour Manufacturing overhead Unit product cost $130.00 80.00 15.00 $225.00 Most of the manufacturing overhead is fixed and unaffected by variations in how many trophies are produced in any given period. However, $3 of the overhead is variable, depending on the number of trophies produced. The customer would like a special logo applied to the trophies requiring additional materials costing $2 per trophy and would also require acquisition of a special tool costing $450 that would have no other use once the special order was completed. This order would have no effect on the company's regular sales, and the order could be filled using the company's existing capacity without affecting any other order. Required: a. What effect would accepting this order have on the company's operating income if a special price of $307.50 is offered per trophy for this order? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net operating income by
Expert Answer:
Answer rating: 100% (QA)
Answer Lets break down the effect of accepting this special order on the companys operating i... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260193275
12th Canadian Edition
Authors: Ray H. Garrison, Alan Webb, Theresa Libby
Posted Date:
Students also viewed these accounting questions
-
Using the data below, compute Dino's return on sales ratio for the month of January. Net Sales $25,000 Cost of goods sold 13,000 Operating expenses 7,500 Other income 5,000 Income tax expense 5,700...
-
If a traveler has a GTCC , they must split disburse their trip reimbursement. What two entities split the reimbursement? Choose an appropriate option and select Submit. TMC & traveler s organization...
-
Light source Path of light beam 8-sided rotating mirror Light detector d Stationary mirror
-
1-Kristen prefaces her speech by talking about her inability to save or invest money. For that reason, she does her speech on an online money management course and focuses on the skills she learned...
-
Explain how global culture can impact the success or failure of a global retailer like Toys R Us.
-
Find the deviations from the mean?
-
Identify an advantage of computer networks.
-
At the end of 2016, Sentry Company reported a deferred tax liability of $ 6,120 based on an income tax rate of 30%. On January 2, 2017, Congress changed the income tax rate to 35%. Required: 1....
-
Below is the company's unadjusted trial balance as of December 31 2023. Cash Accounts receivable Allowance for doubtful accounts. Merchandise Inventory Interior Design Company Unadjusted Trial...
-
Please use comments and declare your cout statements in C++ use aide to make sure the code works. Please run the code in a C++ ide and make sure your declaring your "cout" Convert from hexadecimal to...
-
Required: 1 . Using FIFO, calculate ending inventory and cost of goods sold. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 3 3 0 $5 $5610 April. 9 Purchase 133 $504...
-
If raw materials inventory purchases are equal to 60% of the following month's sales, 50% of purchases are paid for in the month following the purchase, and the remainder is paid in the following...
-
The weir overflow rate in a circular shaped primary clarifier is 35000 gpd/ft. The flow through the plant is 3.0 MGD. What is the diameter of the clarifier?
-
How do businesses strategically employ leverage to amplify their competitive advantage in saturated markets ?
-
What are the potential ramifications of overleveraging assets in a volatile economic landscape, and how can companies mitigate associated risks ?
-
Make a list of at least three of your strongly held beliefs. What are those beliefs based on? List some facts, respected authorities, or other evidence that support them.
-
The figure shows six containers, each of which is filled from the top. Assume that water is poured into the containers at a constant rate and each container is filled in 10 seconds. Assume also that...
-
You receive an offer for a new credit card offering an introductory APR of 8.5 percent per year. What is the corresponding EAR? a. 8.24% b. 8.50% c. 8.84% d. 8.97%
-
Campagna Company expects to have a cash balance of \($46,000\) on January 1, 2002. Relevant monthly budget data for the first 2 months of 2002 are as follows. Collections from customers: January...
-
You have just bought a new condo for $125,000. If you financed 100 percent of the purchase price via a 30-year, 7.75 percent APR loan from your bank, what will be the total amount of interest paid...
Study smarter with the SolutionInn App