Noland Company makes and sells 10,000 student desks each month. They recently received an offer from...
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Noland Company makes and sells 10,000 student desks each month. They recently received an offer from a one-time customer to purchase 2,000 student desks in the coming month for $360 per desk. Noland Company can only make 10,000 student desks per month, so the special order would reduce regular customer sales. Variable costs per desk will remain at $300. This special order will have no effect on fixed costs. 1. Below is the monthly financial data for Noland Company: Total Monthly Data at Sales revenue Variable costs Contribution margin Fixed costs Profit Per Unit $400 $300 $100 10,000 Desks $4,000,000 $3,000,000 $1,000,000 $ 750.000 $250,000 REQUIRED: Prepare an Excel spreadsheet, like the ones shown in the textbook, to determine whether Noland Company would be better off rejecting the special order (Alternative q) of accepting the special offer (Alternative 2). Male a recommendation as to which alternative should be accepted and explain the reasoning for your recommendation. Noland Company makes and sells 10,000 student desks each month. They recently received an offer from a one-time customer to purchase 2,000 student desks in the coming month for $360 per desk. Noland Company can only make 10,000 student desks per month, so the special order would reduce regular customer sales. Variable costs per desk will remain at $300. This special order will have no effect on fixed costs. 1. Below is the monthly financial data for Noland Company: Total Monthly Data at Sales revenue Variable costs Contribution margin Fixed costs Profit Per Unit $400 $300 $100 10,000 Desks $4,000,000 $3,000,000 $1,000,000 $ 750.000 $250,000 REQUIRED: Prepare an Excel spreadsheet, like the ones shown in the textbook, to determine whether Noland Company would be better off rejecting the special order (Alternative q) of accepting the special offer (Alternative 2). Male a recommendation as to which alternative should be accepted and explain the reasoning for your recommendation.
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Alternative 1 Alternative 2 Rejecting the Special Order ... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Posted Date:
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