Question
**IF YOU'RE NOT ABLE TO ANSWER THEM ALL, PLEASE SKIP ALTOGETHER** 1) Bogart Company is considering two alternatives. Alternative A will have revenues of $147,800
**IF YOU'RE NOT ABLE TO ANSWER THEM ALL, PLEASE SKIP ALTOGETHER**
1) Bogart Company is considering two alternatives. Alternative A will have revenues of $147,800 and costs of $104,600. Alternative B will have revenues of $182,400 and costs of $123,200. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g. -15 or parentheses e.g. (15).)
2) At Bargain Electronics, it costs $34 per unit ($19 variable and $15 fixed) to make an MP3 player at full capacity that normally sells for $53. A foreign wholesaler offers to buy 4,380 units at $27 each. Bargain Electronics will incur special shipping costs of $2 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
3) Maize Company incurs a cost of $34.51 per unit, of which $20.13 is variable, to make a product that normally sells for $57.35. A foreign wholesaler offers to buy 6,100 units at $30.17 each. Maize will incur additional costs of $1.09 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
4) Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $480,000, variable expenses of $364,000, and fixed expenses of $150,000. Therefore, the gloves and mittens line had a net loss of $34,000. If Gator eliminates the line, $41,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Alternative Alternative Net Income Increase (Decrease) Revenues $ Costs Net Income C i s better than A. Alternative Alternative Net Income Increase (Decrease) Revenues $ Costs Net Income is better than Alternative B Alternative A Reject Order Accept Order Net Income Increase (Decrease) Revenues Costs-Manufacturing Shipping Net income The special order should be rejected accepted LINK TO TEXT Reject Accept Net Income Increase (Decrease) $ Revenues Costs 184,037 $ $ Net income s Should Maize Company accept the special order? Maize company shoul the special order. Reject Accept LINK TO TEXT Continue Eliminate Net Income Increase (Decrease) Sales Variable costs Contribution margin Fixed costs Net income / (Loss) The analysis indicates that Gator shoul the gloves and mittens line. not eliminate eliminate LINK TO TEXT
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