Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HELP WITH ALL 3 ASAP PLZZ Bluebird Mfg. has received a special one-time order for 9,000 bird feeders at $5 per unit. Bluebird currently produces

HELP WITH ALL 3 ASAP PLZZ image text in transcribed
image text in transcribed
image text in transcribed
Bluebird Mfg. has received a special one-time order for 9,000 bird feeders at $5 per unit. Bluebird currently produces and sells 75,000 units at $10 each. This level represents 75% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $5.00 per unit, which includes $4.00 variable cost and $1.00 fixed cost. If Bluebird accepts this additional business, the incremental cost will be: Multiple Choice O $45,000 $5,000 $36.000 $9,000 Prey 1 of 12 Next > save & Exit Lattimer Company had the following results of operations for the past year: Sales (15,000 units at $11.60) Variable manufacturing costs Fixed manufacturing costs Selling and administrative expenses (all fixed) Operating income $ 174,000 $91,500 15,000 30,000 (136,500) $ 37,500 A foreign company whose sales will not affect Lattimer's market offers to buy 4.200 units at $6.70 per unit. In addition to existing costs, selling these units would add a $0.17 selling cost for export fees. Lattimer's annual production capacity is 25,000 units. If Lattimer accepts this additional business, the special order will yield a: Multiple Choice $6,594 loss. $2,520 profit Save & Exit Sub Bluebird Mfg. has received a special one-time order for 18,000 bird feeders at $7 per unit. Bluebird currently produces and sells 80,000 units at $10.00 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $5.50 per unit, which includes $4.00 variable cost and $1.50 fixed cost. If Bluebird accepts this additional business, the incremental revenue will be Multiple Choice $54,000 $75,200 $72,000. $9.900

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

Step: 3

blur-text-image

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

Frequently Asked Questions In International Standards On Auditing

Authors: Steven Collings

1st Edition

1118765419, 978-1118765418

More Books

Students also viewed these Accounting questions