costs are $ 28 and its total fixed expenses are $ 64,960. Sales during April totaled 1,600 units. ================================================== ACCT 346 Week 5 Homework Assignment
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costs are $ 28 and its total fixed expenses are $ 64,960. Sales during April totaled 1,600 units. ================================================== ACCT 346 Week 5 Homework Assignment
For more course tutorials visit www. uophelp. com
1. Palmer ' s Gourmet Chocolates produces and sells assorted boxed chocolates. The unit selling price is $ 50 per box, unit variable costs are $ 25 per box, and total fixed costs for the company are $ 2,000.
1a. How many boxes of chocolates must Palmer ' s Gourmet Chocolates sell to break even?
1b. What are breakeven sales in dollars?
2. Extreme Sports received a special order for 1,000 units of its extreme motorbike at a selling price of $ 250 per motorbike. Extreme Sports has enough extra capacity to accept the order. No additional selling costs will be incurred. Unit costs to make and sell this product are as follows: direct materials, $ 100; direct labor, $ 50; variable manufacturing overhead, $ 14; fixed manufacturing overhead, $ 10. 2a. List the relevant costs for the decision of whether or not to accept the special order. 2b. What will be the change( difference) in operating income if Extreme Sports accepts the special order? c. Should Extreme Sports accept the special order? Why or why not?
3. Totally Technology manufactures two product lines: Cameras and Video Recorders. The company ' s product line income statement follows: