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I dont understand how they were solved. I need it broken down. Curas-1 PRORLEM3 (16 Points) A customer has asked Lalka Corporation to supply 3.000
I dont understand how they were solved. I need it broken down.
Curas-1 PRORLEM3 (16 Points) A customer has asked Lalka Corporation to supply 3.000 units of product H60, with some modifications, for $34.70 each. The normal selling price of this product is $46,35 each The normal unit product cost of product H60 is computed as follows: Direct materials. ... .................... Direct labor.................. Variable manufacturing overhead.......... Fixed manufacturing overhead............ Unit product cost ................................. $14.70 130 7.00 7.90 $30.90 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product H60 that would increase the variable costs by $3.80 per unit and that would require a one-time investment of $24,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. REQUIRED: a) Determine the effect on the company's total net operating income of accepting the special order. Show your work ACCOPT Rescer Difference 104,100 REVENUE $34.7003000 104100 (44.100) 144.100) COSTS: 139033 DM (8 14,703000) (21000) DL ( 1.30 x 3000 2 (3900) VAR.OW Gan 7.00 y 3o) FixD OH (1,90 X 308) (23700) (23700) ADDITIONAL Cos (11 400) (11 400) (24,ouu) 3.80 (24000) INMENT (300) (34,00) 63,700) b) Should they accept the special order? REJECT IT! EX35596 CH25-2 PROBLEM (15 Points) Alfredo's currently makes all of their food in-house. They have received a bid from the Sweet Tart Company, a nearby bakery, to supply the cakes and pies for $12.00 per cake or pie. The accountant has prepared a cost analysis for 500 cakes as follows: Per Unit $5.00 Total Ingredients $2,500 Hourly labor 2,000 Utilities for oven 750 Depreciation of cake oven 1.000 Supervision of cake makers 250 allocated corporate overhead 1.500 Totals S 3.000 3.00 $16.00 Additional information: If the outside bid is taken there is no other use for the cake oven and the supervisor will be assigned elsewhere. ZREQUIRED: a) Prepare an incremental analysis to determine whether Alfredo's should accept Sweet Tart's bid, assuming 500 pies are sold. Buy DER (aso (nso) 3 MAKE INGRED. (2500) HOURLY LABOR (2000) UTIL, POROVE ( SS Dore. Ob COD) SUPUSCOM (aso) ALLOCATED coll 150D) O (2.50 (1500) (60) (8150) (20 3 750 18000) b) should they accept the outside bid? Please circle: Yes No Step by Step Solution
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