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Fill in the blanks: must be entered as a formula. Exercise 13-27 Special Order Refer to the information for Smooth Move Company above. Suppose a
Fill in the blanks: must be entered as a formula.
Exercise 13-27 Special Order Refer to the information for Smooth Move Company above. Suppose a customer wants to have its company logo affixed to each paperweight using a label. Smooth Move would have to purchase a special logo labeling machine that will cost $12.000. The machine will be able to label the 15.000 units and then it will be scrapped (with no further value). No other fixed overhead activities will be incurred. In addition, each special logo requires additional direct materials of S0.20. Required: CONCEPTUAL CONNECTION Should Smooth Move accept the special order? By how much will profit increase or decrease if the order is accepted? Use the following information for Exercises 13-28 through 13-30- Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Alanson Boyne Conway Total Sales revenue 51.280 $185 $300 S1.763 Less Variable expenses 1.115 45 225 1.383 Contnbution margin $ 163 $140 $ 75 $ 380 Less direct fixed expenses: Depreciation SO 15 10 75 Salanes 93 85 SO 260 Segment margin $ 40 $(15) 45 Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold X $ 105,000 Exercise 13-27 Name: 2. Enter the appropriate amounts or formulas in the gray-shaded cells, or select from 3 the drop-down list. An asterisk (*) will appear to the right of an incorrect answer. 4 5 6 Price Units 7 Revenue $7.00 15,000 8 9 Less variable costs: Cost Units 10 Direct materials $3.10 15.000 46.500 11 Direct labor $2.25 15.000 33,750 12 Variable overhead $1.15 15,000 17.250 13 Less labeling machine 14 Profit (loss) on special order 15 16 Should Smooth Move accept the special order? No 17 Enter as a formula + o un 19Step by Step Solution
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