Holmes Company produces a product that can be either sold as is or processed further. Holmes...

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Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $92,000 to produce 1,600 units that can be sold now for $73,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $270 per unit. If Holmes processes further, the units can be sold for $435 each. Should Holmes sell the product now or process it further? Sales Additional processing costs Income (loss) The company should: Sell as is Process Further Incremental Amount Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 12,000 units follow. The company targets a profit of $338,400 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling $ 102 27 22 8 1. Total cost per unit 2. Markup percentage 3. Selling price Fixed Costs Overhead Selling Administrative 1. Compute the total cost per unit. 2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.) 3. Compute the product's selling price using the total cost method. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) % $472,000 107,000 333,000 Goshford Company produces a single product and has capacity to produce 165,000 units per month. Costs to produce its current sales of 132,000 units follow. The regular selling price of the product is $114 per unit. Management is approached by a new customer who wants to purchase 33,000 units of the product for $75.60 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 $6.40 per unit shipping expense in addition to the regular variable selling and administrative expenses. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses. Fixed selling and administrative expenses Totals. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $75.60 per unit. Determine whether management should accept or reject the new business. Complete this question by entering your answers in the tabs below. Net Income Accept or Reject Costs and expenses: Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $75.60 per unit. Total costs and expenses Net income (loss) Normal Volume Per Unit $12.50 15.00 10.00 17.50 15.00 14.00 $84.00 $ < Not Income Additional Volume 0 0 $ Costs at 132,000 Units $ 1,650,000 1,980,000 1,320,000 2,310,000 1,980,000 1,848,000 $11,088,000 Combined Total $ 0 0 $ 0 0 0 0 0 0 0 0 0 0 Accept or Reject > Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $92,000 to produce 1,600 units that can be sold now for $73,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $270 per unit. If Holmes processes further, the units can be sold for $435 each. Should Holmes sell the product now or process it further? Sales Additional processing costs Income (loss) The company should: Sell as is Process Further Incremental Amount Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 12,000 units follow. The company targets a profit of $338,400 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling $ 102 27 22 8 1. Total cost per unit 2. Markup percentage 3. Selling price Fixed Costs Overhead Selling Administrative 1. Compute the total cost per unit. 2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.) 3. Compute the product's selling price using the total cost method. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) % $472,000 107,000 333,000 Goshford Company produces a single product and has capacity to produce 165,000 units per month. Costs to produce its current sales of 132,000 units follow. The regular selling price of the product is $114 per unit. Management is approached by a new customer who wants to purchase 33,000 units of the product for $75.60 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 $6.40 per unit shipping expense in addition to the regular variable selling and administrative expenses. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses. Fixed selling and administrative expenses Totals. Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $75.60 per unit. Determine whether management should accept or reject the new business. Complete this question by entering your answers in the tabs below. Net Income Accept or Reject Costs and expenses: Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $75.60 per unit. Total costs and expenses Net income (loss) Normal Volume Per Unit $12.50 15.00 10.00 17.50 15.00 14.00 $84.00 $ < Not Income Additional Volume 0 0 $ Costs at 132,000 Units $ 1,650,000 1,980,000 1,320,000 2,310,000 1,980,000 1,848,000 $11,088,000 Combined Total $ 0 0 $ 0 0 0 0 0 0 0 0 0 0 Accept or Reject >

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