Meleys Company reported the following results from the sale of 18,000 units of BY-64 Sales Variable manufacturing costs 162,000 Fixed manufacturing costs Variable selling costs 90,000 72,000 Foad administrative costs The company has received a special, one-time-only order for 2,100 units of BY-64 at $31 each Meleys Company has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the full cost of production is $36. Which of the following conectly notes the change in income if the special order is accepted? $8,400 decrease $4,400 increase $10.500 increase None of these $936.000 456,000
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- Capitol, Incorporated has received a special order for 2,000 units of its product at a special price of $195. The product normally sells for $260 and has the following manufacturing costs: Cost per Unit Direct materials $ 78 Direct labor 52 Variable manufacturing overhead 39 Fixed manufacturing overhead 65 Total unit cost $ 234 Assume that Capitol has sufficient capacity to fill the order without harming normal production and sales. Required: If Capitol accepts the order, what effect will the order have on the company’s short-term profit? What minimum unit price should Capitol charge to achieve a $65,000 incremental profit? Now, assume Capitol is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Capitol accepts the order, what effect will the order have on the company’s short-term profit?Capitol, Incorporated, has received a special order for 2,080 units of its product at a special price of $158. The product normally sells for $208 and has the following manufacturing costs: Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost $ 58 38 28 48 $ 172 Assume that Capitol has sufficient capacity to fill the order without harming normal production and sales. Required: a. If Capitol accepts the order, what effect will the order have on the company's short-term profit? b. What minimum unit price should Capitol charge to achieve a $48,000 incremental profit? c. Now, assume Capitol is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Capitol accepts the order, what effect will the order have on the company's short-term profit? Complete this question by entering your answers in the tabs below. Required A Required B Required C If Capitol accepts the order,…Luca Inc. has received a special order for 2,000 units of its product at a special price of $75. The product normally sells for $100 and has the following manufacturing costs: Assume that Luca Inc. has sufficient capacity to fill the order without harming normal production and sales. If Luca Inc. accepts the order, what effect will the order have on the company's short-term profit? Per Unit Direct materials $30 Direct labor $20 Variable manufacturing overhead $15 Fixed manufacturing overhead $25 a. $50,000 decrease b. $30,000 increase c. $20,000 increase d. $30,000 decrease
- Cranberry has received a special order for 150 units of its product at a special price of $1,900. The product normally sells for $2,400 and has the following manufacturing costs: Per unit Direct materials $ 680 Direct labor 380 Variable manufacturing overhead 480 Fixed manufacturing overhead 580 Unit cost $2,120 Assume that Cranberry has sufficient capacity to fill the order without harming normal production and sales. If Cranberry accepts the order, what effect will the order have on the company's short-term profit? Multiple Choice $54,000 increase $33,000 increase $33,000 decrease $87,000 decreaseSierra Company incurs the following costs to produce and sell a single product. (picture1) During the last year, 25,000 units were produced and 22,000 units were sold. The Finished Goodsinventory account at the end of the year shows a balance of $72,000 for the 3,000 unsold units.Required:1. Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer.2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders.a. Is the $72,000 figure for Finished Goods inventory the correct amount to use on these statements for external reporting purposes? Explain.b. At what dollar amount should the 3,000 units be carried in the inventory for externalreporting purposes?Cranberry has received a special order for 170 units of its product at a special price of $2,350. The product normally sells.for $2,850 and has the following manufacturing costs: Per unit Direct materials 770 Direct labor 470 Variable manufacturing overhead 570 Fixed manufacturing overhead 670 51 Unit cost $2,480 Assume that Cranberry has sufficient capacity to fill the order without harming normal production and sales. If Cranberry accepts the order, what effect will the order have on the company's short-term profit?
- John has received a special order for 100 units of its product at a special price of $2,100. The product normally sells for $2,800 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $ 840 420 560 700 $2,52 0 Assume that John has sufficient capacity to fill the order without harming normal production and sales. If John accepts the order, what effect will the order have on the company's short-term profit?Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Category Per Unit Dollar Amount Price $60,000 Cost of goods sold Gross profit 28,000 32,000 In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: Budgeted Activity Cost Activity Base $51,500 Number of service requests Activity Customer service Project bidding Engineering support 64,000 Number of bids 110,500 Number of customer design changes Total costs 226,000…Ross has received a special order for 10,000 units of its product at a special price of $15. The product normally sells for $22 and has the following manufacturing costs: Per unit Direct materials $ 6 Direct labor 4 Variable manufacturing overhead 3 Fixed manufacturing overhead 7 Unit cost $ 20 Assume that Ross has sufficient capacity to fill the order. If Ross accepts the order, what effect will the order have on the company’s short-term profit?
- Cleveland Corporation Manufactures Can product from a process that yields a by-product called FIZZ. The by-product requires additional processing cost of $30,000. The by-product will require selling and administrative expenses totaling $20,000. It is Cleveland's accounting policy to charge the joint costs to the main product only. Information concerning a batch produced during the year ended December 31, 2020 follows: Product Units Produced Market Value at Split Units Sold Off 100,000 8,000 The joint costs incurred up to split-off point are: Can FIZZ $50 $10 60,000 8,000 Direct materials $2,000,000 Direct labor 800,000 Factory overhead 200,000 The selling and administrative expense of Cleveland Corporation for the year ended December 31, 2020 is $1,000,000 exclusive of that for the by-product. Required: 1. What is the gross profit for the year if the net revenue from by-product is presented as other income? 2. What is the gross profit for the year if the net revenue from by=-product is…Ross has received a special order for 16,000 units of its product at a special price of $23. The product normally sells for $31 and has the following manufacturing costs: Per unit Direct materials $ 7 Direct labor 6 Variable manufacturing overhead 3 Fixed manufacturing overhead 10 Unit cost $ 26 Assume that Ross has sufficient capacity to fill the order. If Ross accepts the order, what effect will the order have on the company’s short-term profit? Multiple Choice $48,000 decrease $112,000 increase $80,000 decrease $240,000 increaseHelix Company has been approached by a new customer to provide 2,000 units of its regular product at a special price of $6 per unit. The regular selling price of the product is $8 per unit. Helix is operating at 75% of its capacity of 10,000 units. Identify whether the following costs are relevant to Helix’s decision as to whether to accept the order at the special selling price. No additional fixed manufacturing overhead will be incurred because of this order. The only additional selling expense on this order will be a $0.50 per unit shipping cost. There will be no additional administrative expenses because of this order. Place an X in the appropriate column to identify whether the cost is relevant or irrelevant to accepting this order. Item Relevant Not Relevant a. Selling price of $6.00 per unit b. Direct materials cost of $1.00 per unit c. Direct labor of $2.00 per unit d. Variable manufacturing overhead of $1.50 per unit e. Fixed manufacturing overhead of $0.75 per unit f. Regular…