Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The company currently operates at 45,000 pairs. The maximum capacity of Arturito is 50,000 pairs. If arturito will accept the order, it will need to stop some of their operations. The shoes normally sell for P600. Costs pertaining to the production are as follows: Manufacturing costs are as follows: Direct material per unit P200 Direct labor per unit 180 Variable overhead per unit 50 Fixed overhead per unit 30 Period costs are as follows: Variable selling costs P20 per unit Fixed administrative costs 450,000 If the company will accept the order: • It will not incur any selling costs. • Variable overhead of P12 per unit will not be incurred. Exportation costs of P150,000 will be incurred. If Arturito will accept the special order, what is the incremental benefit / (loss)? Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The company currently operates at 45,000 pairs. The maximum capacity of Arturito is 50,000 pairs. If arturito will accept the order, it will need to stop some of their operations. The shoes normally sell for P600. Costs pertaining to the production are as follows: Manufacturing costs are as follows: Direct material per unit P200 Direct labor per unit 180 Variable overhead per unit 50 Fixed overhead per unit 30 Period costs are as follows: Variable selling costs P20 per unit Fixed administrative costs 450,000 If the company will accept the order: • It will not incur any selling costs. • Variable overhead of P12 per unit will not be incurred. Exportation costs of P150,000 will be incurred. If Arturito will accept the special order, what is the incremental benefit / (loss)?
Expert Answer:
Answer rating: 100% (QA)
current special offer reduction in revenue saving in cost sales 600 550 50 variable cost di... View the full answer
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
Posted Date:
Students also viewed these accounting questions
-
The trustee of the Thornton Trust was approached by the development director of the Orr-field Symphony Orchestra (OSO) for a gift of $1 million toward the OSO building campaign. The parties agreed...
-
Recently Wang Company was approached by a new customer with an offer to purchase 10,000 units of its model IJ4 at a price of $4 each. Normally Wang Company produces 75,000 units of the IJ4, which the...
-
Fixed costs per annum P60 000 Unit selling price 20 Unit variable cost 10 Relevant range 4 00012 000 units REQUIRED: Calculate the following: a. Break-Even Point in b. Units to be sold to obtain the...
-
Venator fund has a 5% front load. The fund had 13.1% return over the last 5 years. What is the actual annual return for investor invested in the fund for 5 years?
-
Confusion can arise when cost allocations to one consuming department depend on the activity of another consuming department. A commonly misused basis for allocation of central support costs is...
-
Activity The Serada IT is installing a new computer system. Several thing must be done to make sure the system is working properly. A list of activities of optimistic, most likely and pessimistic...
-
What is the System Definition Phase, when does it start, and when does it end?
-
Montclair Tours provides guided educational tours to college alumni associations. The company is divided into two operating divisions: domestic tours and world tours. Each of the tour divisions uses...
-
P17.4) A capacitor with charges +Q and -Q has a plate separation of 3 millimeters. Take Q = 1 mC (10-3 C) and the area of the capacitor plates to be 100 cm. a) What is the capacitance of the...
-
Martin Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Martin Manufacturing's operations: Current Assets as of December 31...
-
Perform a 2019 vertical analysis and a 2018-2019 horizontal analysis of the balance sheets for DMZ, LLC provided below. What areas of concern, if any. do these analyses highlight? Explain your...
-
Define trust region fidelity.
-
What are the advantages of trust region methods over line search methods?
-
Discuss the effect of initial trust region radius (ITRR) on the performance of TR algorithm.
-
Is it possible to convert a constrained optimization problem to an unconstrained optimization problem? Explain your answer with proper example.
-
Give some examples of unconstrained optimization in the field of chemical engineering.
-
Compare performance of three algorithms: Newton's method, bisection method, and the fixed-point iteration method. Write a code implementing Newton's method, the bisection method, and the fixed-point...
-
Following is the current balance sheet for a local partnership of doctors: The following questions represent independent situations: a. E is going to invest enough money in this partnership to...
-
Using the legend provided, classify each of the following tax sources. Legend P = Primary tax source S = Secondary tax source B = Both N = Neither a. Sixteenth Amendment to the U.S. Constitution. b....
-
Search for the phrase "mortgage and real estate fraud" on the IRS's website (www.irs.gov). Read the articles you find and explain why this type of fraud is often unearthed by the IRS.
-
Commercial Bank has initiated an advertising campaign that encourages customers to take out home equity loans to pay for purchases of automobiles. Are there any tax advantages related to this type of...
-
Using data from a random sample of elementary schools, a researcher regresses average test scores on the fraction of students who qualify for reduced-price meals. The regression indicates a negative...
-
In the study of cigarette demand in this chapter, suppose we used as an instrument the number of trees per capita in the state. Is this instrument relevant? Is it exogenous? Is it a valid instrument?
-
In the demand curve model of Equation (12.3), is \(\ln \left(P_{i}^{\text {butter }} ight)\) positively or negatively correlated with the error, \(u_{i}\) ? If \(\beta_{1}\) is estimated by OLS,...
Study smarter with the SolutionInn App