QUESTION 6Wok Around the Clock, Inc., sells specialty woks. In the current year it expects to incur $810,000 in variable costs and $140,000 in fixed costs tomake and sell 10,000 woks at $100 each.If Wok Around the Clock accepts a special order from Hard Wok Cafe to purchase 1,000 woks at $75. Wok Around the Clock will also have to pay$1,200 in shipping costs to deliver the special order. How much would it make or lose on this special order?ENTER A LOSS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -1,000QUESTION 7Daffy Duct, Inc., has the capacity to produce 12,000 cases of duct tape per year but only produces and sells 10,000 cases at $50 per case. Thedirect materials equals $130,000, direct labor equals $110,000, and overhead equals $100,000. Sixty percent of the manufacturing overhead isvariable. The forty percent of fixed overhead is allocated equally to all products.Dewey, Cheatum & Howe has offered to purchase 1,000 cases but at a reduced price of $40 per case. What is the additional operating income(loss) of accepting this offer?ENTER NEGATIVE NUMBERS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -1,000QUESTION 8Toy Story, Inc., has the capacity to produce 100,000 toys per year but only produces 80,000 toys per year. The sale price is $10, the variable costis $7 and allocated overhead equals $80,000 per year. Company B offers to buy an additional 18,000 toys but is only willing to pay $5 per toy.What is the additional operating income (loss) of accepting the offer?ENTER NEGATIVE NUMBERS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -10,000

Special order is one time order which is received and the special order is only accepted if the…

QUESTION 6 Wok Around the Clock, Inc., sells specialty woks. In the current year it expects to incur $810,000 in variable costs and $140,000 in fixed costs to make and sell 10,000 woks at $100 each. If Wok Around the Clock accepts a special order from Hard Wok Cafe to purchase 1,000 woks at $75. Wok Around the Clock will also have to pay $1,200 in shipping costs to deliver the special order. How much would it make or lose on this special order? ENTER A LOSS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -1,000

QUESTION 6 Wok Around the Clock, Inc., sells specialty woks. In the current year it expects to incur $810,000 in variable costs and $140,000 in fixed costs to make and sell 10,000 woks at $100 each. If Wok Around the Clock accepts a special order from Hard Wok Cafe to purchase 1,000 woks at $75. Wok Around the Clock will also have to pay $1,200 in shipping costs to deliver the special order. How much would it make or lose on this special order? ENTER A LOSS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -1,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 13P: Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income...

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Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.
Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?
Question 1 LUMU has demand for 1400 water pumps each year. The cost of a water pump to LUMU is $400. Inventory carrying cost is estimated to be 20% of the unit cost and the ordering cost is $25 per order. If the owner orders in quantities of 300 or more, he can get a 5% discount on the pumps, Should LUMU accepts the quantity discount?
esc QU ON 26 Wok Around the Clock, Inc., sells specialty woks. In the current year it expects to incur $800,000 in variable costs and $130,000 in fixed costs to make and sell 10,000 woks at $100 each. If Wok Around the Clock accepts a special order from Hard Wok Cafe to purchase 1,000 woks at $75. Wok Around the Clock will also have to pay $1,200 in shipping costs to deliver the special order. How much would it make or lose on this special order? ENTER A LOSS WITH A "-"SIGN. DO NOT USE PARENTHESES. EXAMPLE: -1,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers. 1 J J Q A 1 N 2 W S #3 X H E D $ 4 C R 07 dº % 5 F MacBook Pro T V < 60 G Y 7 H B 00 * U 8 J N 60 . к Save O M
Wok Around the Clock, Inc., sells specialty woks. In the current year it expects to incur $840,000 in variable costs and $120,000 in fixed costs to make and sell 10,000 woks at $100 each.If Wok Around the Clock accepts a special order from Hard Wok Cafe to purchase 1,000 woks at $80 each, how much would it make or lose on this special order?
An automobile parts supplier sell Excel brand batteries to van dealers. The annual demand is approximately 1,000 batteries. The supplier pays RO 20 for each battery and estimates that the annual holding cost is 30 percent of the battery’s value. It costs approximately RO 10 to place an order. The supplier currently orders 20 batteries per month. Determine the economic order quantity. a. 57.74 units b. 28.28 units c. 28.82 units d. 82.82 units
Q2. Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit cost, and th e ordering cost is $25 per order. If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. Should Wang take the quantity discount
Calculating breakeven point for two products Scotty’s Scooters plans to sell a standard scooter for $55 and a chrome scooter for $70. Scotty’s purchases the standard scooter for $30 and the chrome scooter for $40. Scotty’s expects to sell one standard scooter for every three chrome scooters. Scotty’s monthly fixed costs are $23,000. Requirements How many of each type of scooter must Scotty’s Scooters sell each month to break even? How many of each type of scooter must Scotty’s Scooters sell each month to earn $25,300? 3 Suppose Scotty’s expectation to sell one standard scooter for every three chrome scooters was incorrect and for every four scooters sold two are standard scooters and two are chrome scooters. Will the breakeven point of total scooters increase or decrease? Why? (Calculation not required.)
Question 2 Ronamart needs 1000 coffee makers per year. The cost of each coffee maker is $78. Ordering cost is $100 per order. Carrying cost is $20 of unit cost. Lead time is 5 days. RonaMart is open 360 days/yr. Required: 2. how many times per year does the store reorder? 3. What is the length of order cycle? 4. What is the total annual cost if EOQ Quantity is ordered?
Plz solve correctly. An automotive supply store sells a product that has a demand of 400 units per month. Its supplier charges an ordering cost of $60 per order and $25 per unit with a 20% discount for orders of 250 units or higher. The store incurs a 20% annual holding cost. What is the store’s total annual cost (purchasing, ordering, and holding) if it orders at a quantity of 300 units? a. $121,560 b. $96,000 c. $120,000 d. $97,560
(D) Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost minimizing solution for this product each year? ii) Determine the re-order level, minimum inventory level and maximum inventory level for the product.
(D) Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost-minimizing solution for this product each year?ii) Determine the re-order level, minimum inventory level and maximum inventory level for the product.