Blossom Co. sells product P-14 at a price of $48 a unit. The per- unit cost data are direct materials $15, direct labour $12, and overhead $12 (75% variable). Blossom has no excess capacity to accept a special order for 35,900 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $ 3 per unit. Indicate the net income ( loss) that Blossom would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. - 15,000 or parenthesis, e. g. (15,000).) Incremental income (loss) $ Blossom Co. the special order.

Blossom Co. sells product P-14 at a price of $48 a unit. The per- unit cost data are direct materials $15, direct labour $12, and overhead $12 (75% variable). Blossom has no excess capacity to accept a special order for 35,900 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $ 3 per unit. Indicate the net income ( loss) that Blossom would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. - 15,000 or parenthesis, e. g. (15,000).) Incremental income (loss) $ Blossom Co. the special order.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

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Vaughn Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $16 (75% variable). Vaughn has no excess capacity to accept a special order for 36,400 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Vaughn would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) Vaughn Co. should not accept the special order. (327,600)
Outdoors Company sells a product for $195 per unit. The variable cost is $70 per unit, and fixed costs are $812,500. Determine (a) the break-even point in sales units and (b) the sales units required to achieve a target profit of $186,875.
Your answer is partially correct. Novak Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $12, and overhead $16 (75% variable). Novak has no excess capacity to accept a special order for 38,200 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Novak would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) Novak Co. should not accept eTextbook and Media Save for Later $ -382000 the special order. Attempts: 2 of 3 used Submit Answer
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Nicolas Inc. sells a product for $109 per unit. The variable cost is $66 per unit, while fixed costs are $621,264. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $114 per unit.a. Break-even point in sales units fill in the blank 1 of 2 unitsb. Break-even point if the selling price were increased to $114 per unit fill in the blank 2 of 2 units
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