Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with 5 through 8 please 5. Randall has received a special order for 2,260 units of its product at a special price
I need help with 5 through 8 please
5. Randall has received a special order for 2,260 units of its product at a special price of $18. The product normally sells for $34 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Per unit $ 3 4 3 Assume that Randall has sufficient capacity to fill the order. If Randall accepts the order, what effect will the order have on the company's short-term profit? If a decrease, place a - sign before your answer. For example, a decrease of $1,000 would be answered -1,000. 6. Garfield Corp. expects to sell 1,490 units of its pet beds in March and 1,760 units in April. Each unit sells for $79. Garfield's ending inventory policy is 40 percent of the following month's sales. Garfield pays its supplier $25 per unit. What is Garfield's budgeted purchases for March? 7. Pope Company produces a model fan, which currently has a net loss. Below are its sales and costs Sales revenue $158,188 Less: Variable costs 67,767 Contribution margin $? Less: Direct fixed costs 47,089 Segment margin $? Less: Common fixed costs 58,749 Net operating income (loss) $? Eliminating the model fan product line would eliminate all of direct fixed costs. All of the common fixed costs would be redistributed to Pope's remaining product lines. By how much will Pope's net operating income increase or decrease if the fan is eliminated? If net income decreases, indicate with a - Example, if net income decreases $1,000. Indicate 1,000. 8. It costs Mills, Inc. $13 per unit to manufacture 1,130 units per month of a product that it can sell for $38 ead Alternatively, Mills could process the units her into a more complex product, which would cost an additional $30 per unit. Mills could sell the more complex product for $57 each. What is the incremental revenue if Mills decides to process furtherStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started