Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls answer these 2 questions Week 7 3 Special order decision: Relevant costs.co Wicket Sports manufactures cricketball. The forecasted profit and statement for the year

pls answer these 2 questions
image text in transcribed
image text in transcribed
Week 7 3 Special order decision: Relevant costs.co Wicket Sports manufactures cricketball. The forecasted profit and statement for the year Defore any special orders as fotos Total Per unkt Sales 300 15 Manufacturing cost of goods told Gross profit Seling expenses Net proft Fixed costs included in the preceding forecasted profile and loss statement are $650 000 manufacturing cost of goods sold and S50 000 inseling expenses. Wicket Sports received a special order for 25 000 cricket balsat 53.75 each Assume that Wicket Sports has sufficient Capacity to manufacture 20 000 more cricket Required Calculate the relevant un cost that Wicket Sports should consider in evaluating this special order. Week 7 5 Make or buy decision 2 Glide Corporation makes car transmissions. The company's records show the following unt costs to manufacture part0887 Direct materials Direct labour Variable overhead Fixed overhead Another manufacturer has offered to supply Glide Corporation with part 1887 for a cost of $100 per unit. Gide utes 2000 unts annually Required if Glide accepts the offer, what will be the short-un impact on profe? Consider and describe both qualitative and quantitative reasons for your decision Week 7 3 Special order decision: Relevant costs ou Wicket Sports manufactures cricket balls. The forecasted profit and foss statement for the year LO before any special orders is as follows: Total Per unit Sales 32 000 000 Manufacturing cost of goods sold Gross profit $ 400 000 $ 100 Selling expenses Net profit 100002 Fixed costs included in the preceding forecasted profit and loss statement are $600 000 in manufacturing cost of goods sold and $50 000 in Selling expenses. Wickel Sports receiveda special order for 25 000 cricket balls at $3.75 each. Assume that Wicket Sports has suficient capacity to manufacture 25 000 more cricket balls Required Calculate the relevant unit cost that Wicket Sports should consider in evaluating this special order. Week 7 5 Make or buy decision uz Glide Corporation makes car transmissions. The company's records show the following unit costs to manufacture part #13887: Direct materials $24 Direct labour 30 Variable overhead 20 Fixed overhead Another manufacturer has offered to supply Glide Corporation with part #8887 for a cost of $100 per unit. Glide uses 2000 units annually. Required if Glide accepts the offer, what will be the short-run impact on profit? Consider and describe both qualitative and quantitative reasons for your decision

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

Students also viewed these Accounting questions

Question

9. Understand the phenomenon of code switching and interlanguage.

Answered: 1 week ago