X has the following data: regular production and sales per year (at 90% capacity) 90,000 units; Total fixed cost of 200,000; Total variable cost of 504,000; regular selling price per unit is 20 per unit. A one time special order was received for 15,000 units for a special offer price of 15 per unit. Decide whether to accept or reject the special order?

2. X produce part X (10,000 units is needed per month)  and incurred the following:  DM is 5 per unit; DL is 5 per unit; and total overhead cost of 30 per unit. The 20% of OH is fixed cost. Handling cost is 10% of DM used. The part can be purchased from outsider at 36 per unit. The plant used in making the product X will be vacant when purchased form outsider, BUT it can be rented out to  other companies at 40,000 per month and 2/3 of FOH will be avoided. What is the disadvantage of decision to make?

 
3. X Corp has projected sales of 100,000, gross profit rate of 45% and return on sales of 15%. AR is 25% of sales; inventory is 10% of cost of sales. X corp has minimum cash balance of 10,000 and fixed assets of 75,000. What is the total assets requirement?


4. The following data are as follows: Budget for the month of January 2020: beginning FG is 40,000 units; Sold units totaled 70,000 units and Ending FG in units is 30,000.Budgeted Cost of production are: DM is 10 per unit; DL of 20 per unit and VOH is 5 per unit. Budgeted FOH is 80,000.What is the budgeted production cost?

5. The following data are as follows: Budget for the month of January 2020: beginning FG is 40,000 units; Sold units totaled 70,000 units and Ending FG in units is 30,000.Budgeted Cost of production are: DM is 10 per unit; DL of 20 per unit and VOH is 5 per unit. Budgeted FOH is 80,000.What is the budgeted production cost?

Answer rating: 100% (QA)

Lets address each question one by one 1 Special Order Decision To decide whether to accept or reject the special order we need to compare the costs and benefits of producing these additional 15000 uni... View the full answer