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White raven [17]
3 years ago
10

Tullius Corporation has received a request for a special order of 8,000 units of product C64 for $50.00 each. The normal selling

price of this product is $53.25 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product C64 is computed as follows:
Direct materials $18.10
Direct labor 7.40
Variable manufacturing overhead 5.20
Fixed manufacturing overhead 4.80
Unit product cost $35.50

Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product C64 that would increase the variable costs by $5.00 per unit and that would require a one-time investment of $43,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order.

Required:
How much is the 'effect' (incremental net operating income) on the company's total net operating income through accepting the special order?
Business
1 answer:
levacccp [35]3 years ago
7 0

Answer:

Incremental operating income   = $71,400

Explanation:

Unit variable cost = 18.10 + 7.4+ 5.20 + 5 = $35.7

Note that the $5 additional variable cost was necessitated by the special order , hence it was added

Sales from special order = ( 8,000× $50)                     400,000

Variable cost         ( 8,000 ××  $35.7                              ( 285600 )

Cost of special machine                                              <u>  (43,000)</u>

Incremental operating income                                     <u>   71,400</u>

Incremental operating income   = $71,400

Note that the fixed costs were not considered in the analysis , this simply because they are not relevant to the special order decision.. They would be incurred either way, whether the special order is accepted or not

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C. When the recipient was not included on the original email.

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This is the correct option because forwarding allows the new recipient to see the email that was sent if they were not originally included.

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3 years ago
Land was acquired in 2018 for a future building site at a cost of $40,000.
maw [93]

Answer:

(A) $40,000

Explanation:

At the time of recording of the fixed assets, the fixed assets should be recorded at purchase cost or historical price

Since in the question, the land was purchased at $40,000. Moreover, for the tax purpose, the land is valued at $27,000 and the qualified appraiser appraise the value at $48,000. The cash payment is also offered for $46,000

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3 0
3 years ago
Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. this is called ______.
asambeis [7]

Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called a<u>n act of waste</u>.

The diminishing value technique assumes that the cost of a depreciating asset decreases extra within the early years of its effective life.

Basically, you take the number 2 hundred and divide it by the object's effective existence. For instance, 10 years, and specific that as a percentage (two hundred/10 = 20% in this example). The depreciation price applies to the faded cost of the asset after it's been depreciated every 12 months.

In the diminishing value approach, depreciation is calculated on the e-book cost of the asset at the start of the year rather than the precept amount with constant percent. on this, the percentage is identical however depreciation quantity steadily decreases as it's far completed on book value.

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2 years ago
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Given that bond guarantees that a construction contractor will enter into a contract.

We are required to give the name of the bond that guarantees that a construction contractor will enter into a contract.

The name of the bond that will gurantee that a construction contractor will enter into a contract is bid bond.

A bid bond basically provides a guarantee that a winning bidder will take up the contract as per the terms at which they bid. A bid bond ensures a compensation to the bond owner if the bidder fails to begin a project. Bid bonds are basically often used in construction jobs or other projects that follow a similar bid-based selection process.

Hence bid bond guarantees that a construction contractor will enter into a contract.

Learn more about bid bond at brainly.com/question/26907335

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8 0
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