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

Q: Chang Industries has 1,500 defective units of product that already cost $44 each to produce. A…

A: Period cost means  which are not directly included in the process of production. General and…

Q: Pardo Company produces a single product and has capacity to produce 105,000 units per month. Costs…

A: SPECIAL OFFER ANALYSIS  Per Unit   Total  Sales  $   63.00  $ 1,323,000 Less: Variable Costs:…

Q: Capitol has received a special order for 2,050 units of its product at a special price of $155. The…

A: A special order is any customer request for items or services that a firm does not normally handle.…

Q: Crystal has received a special order for 4,000 units of its product. The product normally sells for…

A: Minimum selling price = incremental revenue/number of units

Q: Peach has received a special order for 10,000 units of its product. The product normally sells for…

A: Formulas: Unit price = (Profit + Incremental cost)/ Number of units

Q: A customer has requested that Lewelling Corporation fill a special order for 3,200 units of product…

A: Incremental revenue=Special order units×Price per unit=3,200×$28=$89,600

Q: The Carlo Company has received a special order for 600 units of product B for P12 a unit. It usually…

A: Profit is defined as the monetary value which is earned by the individual or an organization, when…

Q: manufacturing overhead costs. if the special order is accepted, variable selling costs would…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: The Mixed Products Company sells one of its products for $180 per unit.  The Company incurs the…

A: Fixed manufacturing overhead is not relevant cost as it will remains same if accept a one-time only…

Q: Carson Manufacturing, Inc., sells a single product for $34 per unit. At an operating level of 8,000…

A: revenue earned from Special Order will be 2000 Units * $18 per unit= $36,000.

Q: Wehrs Corporation has received a request for a special order of 8,300 units of product K19 for…

A: Solution: Revenue from special order = 8300*$45.20= $375,160 Variable cost of special order = 8300 *…

Q: A company receives a special one-time order for 3,000 units of its product at $15 per unit. The…

A: Given: One time order = 3,000 Order for = $15 Unit selling price = $20 Production cost = $13.50…

Q: ABC Company has received a request for a special order of 6,000 units of product A for $21.20 each.…

A: Increase (decrease) in operating income if special order is accepted = (Sales price per unit -…

Q: How do i calculate the net income for a special order?   For example: Blowing Sand Company has just…

A: Special orders decisions: Special orders are orders received at special prices and for bulk…

Q: Theta company has received a special one-time order for 1,500 light fixtures (units) at P15 per…

A: Contribution margin formula: =Desired profit level+ Fixed cost Contribution margin of per unit…

Q: Roger Corp., which has experienced excess production capacity, received a special offer for its…

A: Answer -  Calculation of Profit / Loss when company accept the special offer :     Particulars…

Q: If the special order is excepted what is the impact on the companies overall net operating income?

A: An entity having spare capacity can accept special order at a price that is greater than the…

Q: what is the impact on the companies overall net operating income?

A: Income or Profits generated through an organisation’s day to day activity is known as operating…

Q: A company receives a special order for 200 units that requires stamping the buyer’s name on each…

A: Given information is: A company receives a special order for 200 units that requires stamping the…

Q: Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.40 per unit.…

A: Net income is the income left to an entity after subtracting all the expenses from the revenue…

Q: Potter has received a special order for 11,000 units of its product at a special price of $15. The…

A: Here it is given that there is capacity constraint, hence if the company accepts special order then…

Q: Cranberry has received a special order for 170 units of its product at a special price of $2,350.…

A: The variable cost are effected with changes in number of units produced.  The fixed cost remains…

Q: Helix Company has been approached by a new customer to provide 2,000 units of its regular product at…

A: Sales revenue: It is the revenue earned by a business on selling the goods and services to the…

Q: Gallerani Corporation has received a request for a special order of 6,000 units of product A90 for…

A: In special order decision making we should  not consider Fixed cost that remains constant.

Q: Almond has received a special order for 11,000 units of its product at a special price of $60. The…

A:

Q: Holly Corp. has received a request for a special order of 9,000 units of product Z74 for $46.50…

A: We should  follow  incremental approach

Q: The O'Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large…

A: Total cost of production is nothing but the sum of total variable cost and total fixed cost incurred…

Q: Walnut has received a special order for 2,500 units of its product at a special price of $230. The…

A: As the company is already operating at full capacity effect of this decision should be difference in…

Q: Walnut has received a special order for 2,400 units of its product at a special price of $240. The…

A: Answer)   If the company accepts the offer, it will incur variable expenses like Direct Materials…

Q: Helix Company has been approached by a new customer to provide 3,200 units of its regular product at…

A:

Q: Cranberry has recieved a speacial order for 110 units of its product at a special price of $2000.…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Avocado has received a special order for 2,400 units of its product at a special price. The product…

A: Total special order price = Incremental cost per unit + Incremental profit per unit.    Fixed cost…

Q: Ross has received a special order for 10,000 units of its product at a special price of $15. The…

A: Contribution margin income statement: It is a kind of income statement which reports the sales,…

Q: A customer has requested that Lewelling Corporation fill a special order for 2,700 units of product…

A: Given that: Special order units = 2700 units  Price per unit = $33 per unit

Q: Yont Incorporated produces 600 units of a product each month with a unit variable cost of $24. Total…

A: Relevant cost per unit = variable cost per unit                                       = $24 per unit

Q: Gallerani Corporation has received a request for a special order of 5,600 units of product A90 for…

A: Formula: Incremental net income = Incremental Revenue - Incremental costs

Q: de Manulacturers Inc. is approached by a potential customer to fulfill a one - time - only special…

A: The minimum transfer price to be charged for special order is total variable cost.  Since fixed cost…

Q: A company receives a special order for 200 units that requires stamping the buyer’s name on each…

A: Given information is: A company receives a special order for 200 units that requires stamping the…

Q: Smooth Company manufactures decorative mugs and has been approached by a new customer with an offer…

A: Since you have posted multiple questions, that's why I am answering only the first question. For…

Q: Cool Air​ Inc., manufactures single room sized air conditioners. The cost accounting system…

A: Cost means the money related estimation of consumptions for  materials, supplies, administrations,…

Q: Seville Company manufactures a product with a unit variable cost of $42 and a unit sales price of…

A: Relevant income of the special order is calculated by reducing relevant expenses from the relevant…

Q: John has received a special order for 100 units of its product at a special price of $2,100. The…

A: Special orders are usually one-time and do not attract a fixed cost. So, if the firm has the…

Q: our Corporation has received a request for a special order of 6,000 units of its product for $19…

A: Your Corporation has received a request for a special order of 6,000 units of its product for $19…

Q: Ross has received a special order for 16,000 units of its product at a special price of $23. The…

A: Formulas: Profit = Number of units * (Offer price - Variable cost)

Q: A company contemplating the acceptance of a special order has the following unit cost behavior,…

A: Fixed cost for special order is irrelevant because fixed cost will not change with the special…

Q: Boulevard Company expects to sell 500,000 units in 2021 at P100 per unit. Variable manufacturing…

A: Determine the effect in income when the special order is accepted ::::: special order ::: 50,000…

Q: Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for…

A: There are two types of costs incurred in business. One is fixed costs, which do not change with…

Q: Bramble Company manufactures a product with a unit variable cost of $41 and a unit sales price of…

A: Note: In the special order question, firstly the relevant cost for the special order is calculated.…