After several years producing and selling at a capacity of 50,000 units, Milton Company faced a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
After several years producing and selling at a capacity of 50,000 units, Milton Company faced a year with projected sales and production of 38,000 units. A potential customer offered to purchase 7,000 units at a price of P18 each. The normal sales price is P30 each. Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total P9.00 6.50 2.00 3.75 P21.25 Should Milton accept the order? Justify your answer. After several years producing and selling at a capacity of 50,000 units, Milton Company faced a year with projected sales and production of 38,000 units. A potential customer offered to purchase 7,000 units at a price of P18 each. The normal sales price is P30 each. Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total P9.00 6.50 2.00 3.75 P21.25 Should Milton accept the order? Justify your answer.
Expert Answer:
Answer rating: 100% (QA)
Price offered by the potential customer 18 Variable ... View the full answer
Related Book For
Posted Date:
Students also viewed these general management questions
-
milk product manufacturer operating at a capacity of 1200 L/h heats the drink to 75 C for pasteurization. The heated milk, after exiting the heating section of the pasteurization system, enters a...
-
The Sleep-Over Kennel has a capacity of 50 animals and is open 360 days per year. Operating costs of the kennel are as follows: Annual depreciation on the...
-
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be...
-
Charlie invested $2,000 at the end of 2015, $2,500 at the end of 2016 and $550 at the end of 2017.She earned 8% on her investment.How much money did she have at the end of 2017?
-
How might the Internet, intranets, and extranets affect the business drivers or requirements responsible for a companys use of global IT, as shown in Figure? Give several examples to illustrate...
-
You are provided with the following information for Gobler Inc. Gobler Inc. uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 2,000 liters at a cost...
-
Explain what world trade means. What is the role of the WTO and economic communities in encouraging free trade? What is protectionism? Explain import quotas, embargoes, and tariffs.
-
Everyday Hardware Consultants purchased a building for $540,000 and depreciated it on a straight-line basis over a 40-year period. The estimated residual value is $96,000. After using the building...
-
Projected future financial statements are called: pro forma statements.reconciled statements.plug statements.aggregated statements.comparative statements
-
The probability that a student receives an A in a course is 0.1. The probability that a student studies less than 30 hours per week is 0.503. The probability that a student studies less than 30 hours...
-
At a dragstrip, a race car accelerates for a distance d, starting from rest. The time of acceleration is t. Determine the speed at time t. [Data: d = 173.0 m; t = 3.43 s]
-
b) If a company imported wine from France to sell in Australia, describe how its competitiveness is affected if the exchange rate of one Australian dollar to the Euro changed from 0.60 to 0.80.
-
The Income statement for one of Manhattan Company's products shows: Sales (100 units at $100 a unit)...................................................$10,000 Cost of goods sold: Direct...
-
How do eukaryotic cells maintain membrane integrity, regulate membrane trafficking, and coordinate intracellular communication through complex membrane-bound organelles, such as the endoplasmic...
-
For F = 62 lb, compute the combined moment of the two forces about (a) point O, (b) point C, (c) point D. The moments are positive if counterclockwise, negative if clockwise. Answer: 16 1 1 A...
-
Toys Inc. manufacturers toy robots. They currently sell just one product called "Wonderful" that sells for $89 per unit. Production schedules are determined prior to the beginning of each month....
-
is $8.65 million and inventory investment is $1.65 million. a) What was its weeks of supply last year? weeks (round your response to two decimal places). b) What is its weeks of supply this year? week
-
Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2012 is: Joint cost of production in July 2012 was $50. A...
-
Using the data provided in E6- 30A, the laboratory manager performed a regression analysis to predict total laboratory overhead costs. The output generated by Excel is as follows: Requirements 1....
-
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby Memorabilia & More with a special order. The Hall of Fame wants to purchase 58,000 base-ball card packs for a special...
-
Identify each of Knox Industries transactions listed below as operating ( O), investing ( I), financing ( F), noncash investing and financing ( NIF), or a transaction that is not reported on the...
-
When a lease is classified as an operating lease, a. the lease liability should be presented on the balance sheet of the lessee. b. the lease liability should be presented on the balance sheet of the...
-
When an investor views the debt-to-equity ratio of a company, a. it is a measure of the companys liquidity. b. a high value is generally viewed favorably. c. a low value is generally viewed...
-
When an investor views the times interest earned ratio of a company, a. it is a measure of the companys liquidity. b. a high value is generally viewed favorably. c. a low value is generally viewed...
Study smarter with the SolutionInn App