One of Rutkey's regular customers asked the company to fill a special order of 800 units...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
One of Rutkey's regular customers asked the company to fill a special order of 800 units at a selling price of $2.65 per unit. Rutkey's can fill the order using existing capacity without affecting total fixed costs for the month. However, Rutkey's manager was concerned about selling at a price below the $2.65 cost per unit and has asked for your advice. Required: a. Prepare a schedule to show the impact of providing the special order of 800 units on Rutkey's profits in addition to the regular production and sales of 19,100 units per month. b. Based solely on the data given, what is the lowest price per unit at which the model cars could be sold for the special order without reducing Rutkey's profits? c. If Rutkey Collectibles company was operating at capacity, what would happen to operating profit if the special order was accepted? One of Rutkey's regular customers asked the company to fill a special order of 800 units at a selling price of $2.65 per unit. Rutkey's can fill the order using existing capacity without affecting total fixed costs for the month. However, Rutkey's manager was concerned about selling at a price below the $2.65 cost per unit and has asked for your advice. Required: a. Prepare a schedule to show the impact of providing the special order of 800 units on Rutkey's profits in addition to the regular production and sales of 19,100 units per month. b. Based solely on the data given, what is the lowest price per unit at which the model cars could be sold for the special order without reducing Rutkey's profits? c. If Rutkey Collectibles company was operating at capacity, what would happen to operating profit if the special order was accepted?
Expert Answer:
Answer rating: 100% (QA)
SOLUTION a To prepare a schedule to show the impact of providing the special order of 800 units on R... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these accounting questions
-
Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars. Each car sells for $40. The cost of each unit follows: Materials . . . . . . . . . . . . . . . ....
-
Assume that Dan & Barrys sells ice cream for $3 per quart. The cost of each quart follows: Materials...
-
Assume that Cold Rock sells ice cream for $4.80 per gallon. The cost of each gallon follows: Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.80...
-
Evaluate the derivatives of the following functions. (z) = cot -1 z
-
A random sample of 1500 residential telephones in Phoenix in 1990 found that 387 of the numbers were unlisted. x2 x1 = 88 = 91 A random sample in the same year of 1200 telephones in Scottsdale found...
-
Ammonia is oxidized with air to form nitric oxide in the first step of the production of nitric acid. Two principal reactions occur: 4 NH 3 + 5O 2 ? 4NO + 6H 2 O 2 NH 3? + 3/2 O 2? ? N 2? + 3H 2 O A...
-
When you should file a notice of lien?
-
Suppose Stenback Valley is deciding whether to purchase new accounting software. The payback for the $30,050 software package is five years, and the softwares expected life is seven years. Stenback...
-
write the following three sections based on a beauty salon industry. you can use any one city of America as your target market. write these sections of 300 wrds each. Section D: Target Market and...
-
Fultz and Hunter form a partnership on January 1, 2018, contributing $59,000 and $20,000, respectively. The partnership had net income of $164,000. Based on the partnership agreement, Fultz's share...
-
Write a python program where the user is prompted to enter a salary and display the increased salary. Increased salary will be calculated based on the condition: If salary is greater than 70000, then...
-
The pricing analyst at Richford Triathlon finds that when she increases the price of the Richford Florida triathlons from 650 USD to 750 USD, the event ticket sales drop from 4,000 to 3,800. Show all...
-
1) Write a program using the switch statement name Grade Report that reads a grade from the user and prints the comments accordingly. Hint Prompt the user to enter their grade user must be prompt to...
-
A shoe manufacturer is evaluating new equipment that would custom fit athletic shoes. The new equipment costs $107,000 and will generate $43,000 in net cash flows for five years. Note: Negative...
-
How do organisms communicate with one another, both within and across species, and what are the evolutionary and ecological implications of these communication strategies ?
-
Explain what loan syndication is and give reasons why banks use it. Compare loan syndication with underwriting a bond issuance. Are there any similarities? Explain
-
Import & Export Management 1. Explain the relationship of International Trade, Transportation Chains and Logistics as picture below: International Trade A Transport Chain A Origin A Rail Composition...
-
On October 31 Juanita Ortega, owner of Outback Guide Service, received a bank statement dated October 30. Juanita found the following: 1. The checkbook has a balance of $2,551.34. 2. The bank...
-
Alameda Tile sells products to many people remodeling their homes and thinks that they could profitably offer courses on tile installation, which might also increase the demand for their products....
-
Three entrepreneurs were looking to start a new brewpub near Sacramento, California, called Roseville Brewing Company (RBC). Brewpubs provide two products to customersfood from the restaurant segment...
-
Would a dentist, an architect, a landscaper, and a lawyer use job costing or process costing? Explain.
-
List and describe two methods of depreciation. For each, provide an example of an asset where it might be appropriate to use that method.
-
What is the accruals concept? Provide one example to show you understand this.
-
If an entitys accounts are prepared on a break-up basis, what does this mean?
Study smarter with the SolutionInn App