Sheridan Company incurred the following costs for 54000 units: Variable costs $324000 Fixed costs 392000 Sheridan has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2800 for shipping. If Sheridan wants to earn $4000 on the order, what should the unit price be? $9.40 $10.66 $8.00 $16.66

Sheridan Company incurred the following costs for 54000 units: Variable costs $324000 Fixed costs 392000 Sheridan has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2800 for shipping. If Sheridan wants to earn $4000 on the order, what should the unit price be? $9.40 $10.66 $8.00 $16.66

Name: Sheridan Company incurred the following costs for 54000 units:Variable
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Sheridan Company incurred the following costs for 54000 units:Variable costs$324000Fixed costs392000Sheridan has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regul

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EA: Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special...

See similar textbooks

Similar questions

Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)
Marigold Corp. incurred the following costs for 52000 units: Variable costs $312000 Fixed costs 392000 Marigold has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2400 for shipping. If Marigold wants to earn $4000 on the order, what should the unit price be? O $8.00 O $10.74 O $9.20 O $16.74
Sheffield Corp. incurred the following costs for 82000 units: Variable costs Fixed costs O $15.58 O $8.70 O $8.88 O $10.80 $549400 Sheffield has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4200 for shipping. If Sheffield wants to earn $4000 on the order, what should the unit price be? Save for Later 392000 Attempts: 0 of 1 used Submit Answer
Concord Corporation incurred the following costs for 66000 units: Variable costs $396000 Fixed costs 392000 Concord has received a special order from a foreign company for 3500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4900 for shipping.If Concord wants to break even on the order, what should the unit sales price be? $11.94 $7.40 $6.00 $13.34
Vaughn Manufacturing has the following costs when producing 100000 units: Variable costs $600000 Fixed costs 900000 An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $167000. The net increase (decrease) in the net income of accepting the supplier's offer is O $317000. O $(17000). O $832000. O $283000.
A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5100 units at $135 a unit. In order to fulfill the order, 2900 units of regular sales would have to be foregone.The incremental profit (loss) from accepting the order would be $(99000). $45000. $(153000). $210000.
A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $167. A special order from a foreign company has been received for 5000 units at $135 a unit. In order to fulfill the order, 2000 units of regular sales would have to be foregone.The opportunity cost associated with this order is $184000. $334000. $150000. $270000.
Swifty Corporation’s unit manufacturing cost is: Variable Costs $50 Fixed Costs 25 A special order for 2000 units has been received from a foreign company. The unit price requested is $54. The normal unit price is $92. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be $34000. $(42000). $(46000). $4000.
Martin Company incurred the following costs for 70,000 units:Variable costs $420,000Fixed costs $392,000Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Martin wants to earn $6,000 on the order, what should the unit price be? Group of answer choices $9.70 $15.70 $8.00 $10.10
VIEW on Current Attempt in Progress Concord Corporation incurred the following costs for 66000 units: Variable costs Fixed costs $396000 $11.94 $6.00 $7.40 $13.34 392000 Concord has received a special order from a foreign company for 3500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4900 for shipping. If Concord wants to break even on the order, what should the unit sales price be?
Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs $392,000 Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Martin wants to earn $6,000 on the order, what should the unit price be? Group of answer choices $9.70 $15.70 $8.00 $10.10
Marie Company’s unit manufacturing costs are: Variable Cost P50 Fixed Cost 25 A special order for 2,000 units has been received from a foreign company. The unit selling price requested is P55. The normal unit selling price is P80. If the order is accepted, unit variable costs will increase by P2 for additional freight costs. Marie has sufficient capacity to accommodate the special order. How much is the incremental profit or loss if the order is accepted?