Business, 18.03.2021 01:50 rachanachannagiri

Gallerani Corporation has received a request for a special order of 5,600 units of product A90 for $27.80 each. Product A90's unit product cost is $27.40, determined as follows: Direct materials $ 3.00 Direct labor 8.30 Variable manufacturing overhead 7.40 Fixed manufacturing overhead 8.70 Unit product cost $ 27.40 Assume that 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 modifications made to product A90 that would increase the variable costs by $4.10 per unit and that would require an investment of $20,000 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. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:10, victorialeverp714lg

Ms. sophia jones, the company president, has heard that there are multiple breakeven points for every product. she does not believe this and has asked you to provide the evidence of such a possibility. some information about the company for 2017 is as follows:

Answers: 1

continue

Business, 21.06.2019 21:00, singfreshjazz3370

Colah company purchased $1.8 million of jackson, inc. 8% bonds at par on july 1, 2018, with interest paid semi-annually. when the bonds were acquired colah decided to elect the fair value option for accounting for its investment. at december 31, 2018, the jackson bonds had a fair value of $2.08 million. colah sold the jackson bonds on july 1, 2019 for $1,620,000. the purchase of the jackson bonds on july 1. interest revenue for the last half of 2018. any year-end 2018 adjusting entries. interest revenue for the first half of 2019. any entry or entries necessary upon sale of the jackson bonds on july 1, 2019. required: 1. prepare colah's journal entries for above transaction.

Answers: 1

continue

Business, 22.06.2019 04:50, garrowe96

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

Answers: 2

continue

Business, 22.06.2019 12:50, emarquez05

Two products, qi and vh, emerge from a joint process. product qi has been allocated $34,300 of the total joint costs of $55,000. a total of 2,900 units of product qi are produced from the joint process. product qi can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,900 and then sold for $13 per unit. if product qi is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?

Answers: 2

continue

You know the right answer?

Gallerani Corporation has received a request for a special order of 5,600 units of product A90 for $...