Oriole Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,100 golf discs is: Materials $ 10,653 Labor 29,346 Variable overhead 20,100 Fixed overhead 41,205 Total $101,304

Exercise 20-02a-b (Video) Your answer is partially correct. Try again. Oriole Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,100 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 10,653 29,346 20,100 41,205 $101,304 Oriole also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Oriole $4.90 per disc for 5,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Oriole. If Oriole accepts the offer, its fixed overhead will increase from $41,205 to $46,895 due to the purchase of a new imprinting machine. No sales commission will result from the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues 0 24799 24799 Materials 0 2661 2661 = Labor 7329 7329 M Variable overhead 0 5020 5020 M Fixed overhead 0 5690 5690 Sales commissions 0 0 Net income 4099 4099 (b) Should Oriole accept the special order? Oriole should the special order. Click if you would like to Show Work for this question: Open Show Work Exercise 20-10 a-d (Video) Cullumber Inc. produces three separate products from a common process costing $100,900. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Value Cost to Sales Value at Split-Off Process after Further Point Further Processing Product 10 $59,800 $100,900 $190,300 Product 12 15,300 29,000 34,800 Product 14 56,000 149,900 215, 200 x Your answer is incorrect. Try again. Determine total net income if all products are sold at the split-off point. Net income 13775 LINK TO TEXT VIDEO. SIMILAR EXERCISE x Your answer is incorrect. Try again. Determine total net income if all products are sold after further processing. Net income 3525 LINK TO TEXT VIDEO. SIMILAR EXERCISE : Your answer is partially correct. Try again. Calculate incremental profit/(loss) and determine which products should be sold at the split-off point and which should be processed further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product Incremental profit (loss) Decision Product 10 43375 should be processed further $ Product 12 5975 Should be sold at the split-off point $ Product 14 22,200 Should be processed further LINK TO TEXT VIDEO: SIMILAR EXERCISE Your answer is partially correct. Try again. Determine total net income using the results from previous part. Net income 29,400 Is the net income different from that determined in part (b)? Tres higher 69,100 net income is by Click if you would like to Show Work for this question: Open Show Work