subject
Business, 06.08.2019 17:10 alecnewman2002

Goshford company produces a single product and has capacity to produce 100,000 units per month. costs to produce its current sales of 80,000 units follow. the regular selling price of the product is $100 per unit. management is approached by a new customer who wants to purchase 20,000 units of the product for $75.00 per unit. if the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. the customer is not in the company’s regular selling territory, so there will be a $5.00 per unit shipping expense in addition to the regular variable selling and administrative expenses. per unit costs at 80,000 units direct materials $ 12.50 $ 1,000,000 direct labor 15.00 1,200,000 variable manufacturing overhead 10.00 800,000 fixed manufacturing overhead 17.50 1,400,000 variable selling and administrative expenses 14.00 1,120,000 fixed selling and administrative expenses 13.00 1,040,000 totals $ 82.00 $ 6,560,000 calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $75.00 per unit. determine whether management should accept or reject the new business. accept reject

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 09:40
Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?
Answers: 2
question
Business, 23.06.2019 04:40
2. a computer equipment was acquired at the beginning of the year at a cost of $56,000 with an estimated residual value of $5,000, and an estimated useful life of five years. determine the second year’s depreciation expense using the straight-line method.
Answers: 3
question
Business, 23.06.2019 15:00
Credit card can be a wonderful item to have. however, they can also create problems. how can individuals protect themselves from financial difficulties when they make purchases with credit? what should someone do if they experience credit problems?
Answers: 1
question
Business, 24.06.2019 13:10
What is the best definition for mercantilism?
Answers: 2
You know the right answer?
Goshford company produces a single product and has capacity to produce 100,000 units per month. cost...
Questions
question
Mathematics, 10.09.2021 06:00
question
Physics, 10.09.2021 06:00
question
Mathematics, 10.09.2021 06:00
Questions on the website: 13722363