Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bramble Inc. manufactures golf clubs in three models. For the year. the Lawn line has a net loss of $18,500 from sales of $208,000, variable

image text in transcribedimage text in transcribedimage text in transcribed
Bramble Inc. manufactures golf clubs in three models. For the year. the Lawn line has a net loss of $18,500 from sales of $208,000, variable costs of $187,200, and fixed costs of $39,300. If the Lawn line is eliminated, $20,600 of fixed costs will remain. Prepare an analysis showing whether the Lawn line should be eliminated. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).) Increase Continue Eliminate (Decrease) $ V VSplish Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct materials $16, direct labour $10, and overhead $16 (75% variable). Splish has no excess capacity to accept a special order for 38,300 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Splish would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. - 15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) S Splish Co. the special order.Pharoah Co. sells product P-14 at a price of $46 a unit. The per-unit cost data are direct materials $17, direct labour $10, and overhead $12 (75% variable). Pharoah Co. has sufficient capacity to accept a special order for 37,500 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Determine whether Pharoah Co. should accept the special order. (Enter loss with a negative sign preceding the number, e.g. - 15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) Pharoah Co. the special order

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Equations & Answers

Authors: Barcharts, BarCharts Inc

1st Edition

1423218248, 9781423218241

More Books

Students also viewed these Accounting questions

Question

2. It is the results achieved that are important.

Answered: 1 week ago