Question: Please, help... post the steps and calculations if possible Down Home Jeans Co. has an annual plant capacity of 66,400 units, and current production is

Please, help... post the steps and calculations if possible

Down Home Jeans Co. has an annual plant capacity of 66,400 units, and current production is 45,200 units. Monthly fixed costs are $39,900, and variable costs are $25 per unit. The present selling price is $34 per unit. On February 2, 2014, the company received an offer from Fields Company for 13,800 units of the product at $26 each. Fields Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Down Home Jeans Co.

a. Prepare a differential analysis on whether to reject (Alternative 1) or accept (Alternative 2) the Fields order. If an amount is zero, enter zero "0".

Please, help... post the steps and calculations if possible Down Home Jeans

c. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Use GPA3.RAW for this exercise. The data set is for 366 student-athletes from a large university for fall and spring semesters. [A similar analysis is in Maloney and McCormick (1993), but here we use...

1. Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $600,200 and has $348,100 of accumulated depreciation to date, with a new machine that has a...

only need help with part c please. please explain how to obtain it; thank you :) Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 64,100 units, and...

1. 2. Decision on Accepting Additional Business Down Home Jeans Co has an annual plant capacity of 66,000 units, and current production is 45,000 units. Monthly fixed costs are $38,100, and variable...

Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 65,500 units, and current production is 45,300 units. Monthly fixed costs are $40,900, and variable costs...

Down Home Jeans Co. has an annual plant capacity of 66,700 units, and current production is 46,900 units. Monthly fixed costs are $39,400, and variable costs are $25 per unit. The present selling...

1. Decision on Accepting Additional Business Brightstone Tire and Rubber Company has capacity to produce 221,000 tires. Brightstone presently produces and sells 169,000 tires for the North American...

Sell or Process Further Jackson Lumber Company incurs a cost of $400 per hundred board feet (hr) in processing certain "rough-cut" lumber, which it sells for $554 per hbr. An alternative is to...

1. Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 66,200 units, and current production is 44,200 units. Monthly fixed costs are $41,100, and variable...

Decision on Accepting Additional Business Down Home Jeans Co. has an annual plant capacity of 66,100 units, and current production is 43,300 units. Monthly fixed costs are $38,500, and variable costs...

Down Home Jeans Co. has an annual plant capacity of 64.000 units, and current production is 45, 200 units Monthly feed costs are $41, 600, and variable costs are $25 per unit. The present selling...

The company has cash of $136, accounts receivable of $87, accounts payable of $215, and inventory of $409. What is the value of the quick ratio?

Let P and P be values of the saturation vapor pressure of a pure liquid at absolute temperatures Ti and T2. Justify the following interpolation formula for estimation of the vapor pressure P sat at...

The results of the estimated CAPM and multifactor models for the returns of the GLCGX fund ( Large Cap Growth ) are given below. What is the implication of the intercept coefficient in each model? lm...

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Component per Month...

1. Both antitrust policy and industrial regulation deal with monopoly. What distinguishes the two approaches? How does government decide to use one form of remedy rather than the other? LO21.1, LO21.3

LO21.1 List and explain the core elements of the major antitrust (antimonopoly) laws in the United States.

2. Suppose in Fiscalville there is no tax on the first $10,000 of income, but a 20 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any...