Remaining: 28 min. CALCULATOR question 7 at Bargain Electronics, it costs $31 per unit ($20 variable ai to make an MP3 player that normally sells for $49. A foreigr offers to buy 4,170 units at $25 each. Bargain Electronics w Shipping costs of $1 per unit. Assuming that Bargain Electro excess operating capacity, indicate the net income (loss) Bar Electronics would realize by accepting the special order. (En amounts using either a negative sign preceding the nu -45 or parentheses e.g. (45).) Ne II Reject Order Accept Order Revenues Costs-Variable manufacturing Shipping Net income The special order should be Blackboard: Texas W Accounting, 8e :38 AM / Remaining: 26 min. CALCULATOR BACK NEXT Question 6 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 61% or direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 29,100 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.45 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $40,400 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials Direct labor Variable overhead Costs Remaining: 28 min. CALCULATOR question 7 at Bargain Electronics, it costs $31 per unit ($20 variable ai to make an MP3 player that normally sells for $49. A foreigr offers to buy 4,170 units at $25 each. Bargain Electronics w Shipping costs of $1 per unit. Assuming that Bargain Electro excess operating capacity, indicate the net income (loss) Bar Electronics would realize by accepting the special order. (En amounts using either a negative sign preceding the nu -45 or parentheses e.g. (45).) Ne II Reject Order Accept Order Revenues Costs-Variable manufacturing Shipping Net income The special order should be Blackboard: Texas W Accounting, 8e :38 AM / Remaining: 26 min. CALCULATOR BACK NEXT Question 6 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 61% or direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 29,100 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.45 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $40,400 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Direct materials Direct labor Variable overhead Costs
