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. ABoccbd Emphasis T Heading 1 1 Heading 2 TNo Spac. 1 Norman Paragraph Problem 2 Friendly Company produces a single product. Recently, the company

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. ABoccbd Emphasis T Heading 1 1 Heading 2 TNo Spac. 1 Norman Paragraph Problem 2 Friendly Company produces a single product. Recently, the company received a special order from a large national public corporation that wants to purchase 900 units of the company's product at $110 each. Friendly Company's usual individual orders are no more than 25 units. So, this proposed 900 unit order is much larger than their usual order. The order will not affect the selling price to regular customers. Friendly Company's income statement for the past month is as follows: Sales (1,200 units) $144,000 Cost of goods sold - 108,000 Gross profit $ 36,000 Selling and administrative expenses 10,000 Net income S_26.000 There was no beginning or ending inventories of work-in-process or finished goods. For the month presented the company's detailed manufacturing costs were as follows: Direct materials ($20/unit) $24,000 Direct labor ($32/unit) 38,400 Variable manufacturing overhead (518/unit) 21,600 Fixed manufacturing overhead ($20/unit) 24.000 Total $108,000 Average cost per unit 590 Selling and administrative expenses are all fixed. Required: - Assuming the company has sufficient productive capacity to supply the special order, prepare an analysis of the relevant costs and revenues associated with the special order. Please show your work b. Given the analysis above should the comman accento relect the special order? Please explain (1) Accounting - Saved to this PC o search 5 Mailings Review View Help A 21 AaBbCel AaBb Cel A. AaB AaBbced AaBbc Emphasis T Heading 1 Heading 2 1. No Space T Norma Styles 5 Paragraph presented, the company's detailed manufacturing costs were as follows: Direct materials (S20/unit) $24,000 Direct labor ($32/unit) 38,400 Variable manufacturing overhead ($18/unit) 21,600 Fixed manufacturing overhead ($20/unit) 24,000 Total $108,000 Average cost per unit $90 Selling and administrative expenses are all fixed. Required a. Assuming the company has sufficient productive capacity to supply the speciwder prepare an analysis of the relevant costs and revenues associated with the special order. Hlease show your work b. Given the analysis above, should the company accept or reject the special order? Please explain your answer, brictly Suggest 3 qualitative, i.e. non-financial, issues the company should consider when deciding on providing this special order. d. Assuming the company does not have excess capacity to produce the special order and will have to shift production from their normal customers to meet the order, determine the net financial advantage or disadvantage (profit increase or decrease) of accepting the order. Please show your work. e. Under the assumptions given in part d. and based on your analysis, do you recommend accepting or rejecting the special order? Please explain your answer, briefly. Yunay namunatone solution must be posted on Blackboard by Friday, December 18* 1:59. Eran received after the date a he metto a point penalty for each day or part of a day the exam is reedter the che dann Lastly, thus cam to be completed by the read the only Prof Johas reserve the right to acceptance of a nume paper that appear to be improperly comed

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