Question

Question 7 (Q 8) ZBar Supplies is currently producing 20,000 tape dispensers per month, but has...

Question 7 (Q 8)

ZBar Supplies is currently producing 20,000 tape dispensers per month, but has the capacity to produce 25,000 tape dispensers without incurring any additional fixed costs. The selling price is $5.00 per dispenser and variable cost per unit is $2.00. Total fixed costs are $35,000. Marathon Corporation approaches ZBar with a proposal to buy 4,000 dispensers at a price of $4.25 per unit. Prepare the incremental analysis that ZBar should use to evaluate this situation. Assuming that other customers are not affected, should ZBar accept Marathon’s offer?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assume a division of Hewlett-Packard currently makes 16,000 circuit boards per year used in producing diagnostic...
Assume a division of Hewlett-Packard currently makes 16,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $27 per board, consisting of variable costs per unit of $22 and fixed costs per unit of $5. Further assume Sanmina Corporation offers to sell Hewlett-Packard the 16,000 circuit boards for $27 each. If Hewlett-Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $25,000 per year....
The Belik Company has the capacity to produce 5,000 units per year. Its predicted operations for...
The Belik Company has the capacity to produce 5,000 units per year. Its predicted operations for the year are as follows: Sales (4,000 units @ $20 each) $80,000 Manufacturing costs: Variable $5 per unit Fixed $10,000 Marketing and administrative costs: Variable $1 per unit. Fixed $8,000 The accounting department has prepared the following projected income statement for the coming year for your use in making decisions. Sales $80,000 Variable costs: Manufacturing ($5 x 4,000) $20,000 Marketing ($1 x 4,000) 4,000...
Rabbit Foot Motors has been approached by a new customer with an offer to purchase 5,000...
Rabbit Foot Motors has been approached by a new customer with an offer to purchase 5,000 units of its hands-free, Wi-Fi-enabled automotive model—the SMAK—at a price of $18,000 per automobile. Rabbit Foot’s other sales would not be affected by this new customer offer. Rabbit Foot normally produces 100,000 units of its SMAK model per year but only plans to produce and sell 90,000 in the coming year. The normal sales price is $35,000 per SMAK. Unit cost information for the...
Jerston Company has an annual plant capacity of 4,000 units. Data concerning this product are given...
Jerston Company has an annual plant capacity of 4,000 units. Data concerning this product are given below:    Annual Sales at Regular Selling Prices    3,400 Units    Manufacturing Costs:             Variable $15.00 Per Unit    Fixed $60,000.00 Per Year    Selling and Administrative Expenses:          Variable $4.00 Per Unit    Fixed $8,500.00 Per Year The company has received a special order for 600 units at a selling price of $22 each. Regular sales would...
Exercise 7-6 a1-a2 (Part Level Submission) (Video)q Jobs, Inc. has recently started the manufacture of Tri-Robo,...
Exercise 7-6 a1-a2 (Part Level Submission) (Video)q Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 19,500 Tri-Robos is as follows. Cost Direct materials ($48 per robot)$936,000 Direct labor ($39 per robot)760,500 Variable overhead ($6 per robot)117,000 Allocated fixed overhead ($31 per robot)604,500     Total$2,418,000 Jobs is approached by Tienh Inc., which offers to...
Question-3 Spring Manufacturing sold 610,000 units of its product for $98 per unit in 2019. Variable...
Question-3 Spring Manufacturing sold 610,000 units of its product for $98 per unit in 2019. Variable cost per unit is $50, and total fixed costs are $1,870,000. Required: 1. Calculate (a) contribution margin and (b) operating income. 2. Spring’s current manufacturing process is labor intensive. Jim Gate, Spring’s production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to $6,770,000. The variable costs are expected to decrease to $35 per unit. Spring expects to...
Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a...
Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a company called Lost Mine Industries about producing a special order for a custom umbrella called the Ultimate Shade (US). The special-order umbrellas with the Lost Mine Company logo would be distributed to participants at an upcoming convention sponsored by Lost Mine. Lost Mine has offered to buy 2,300 of the US umbrellas at a price of $19 each. Mohave currently has the excess capacity...
Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a...
Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a company called Lost Mine Industries about producing a special order for a custom umbrella called the Ultimate Shade (US). The special-order umbrellas with the Lost Mine Company logo would be distributed to participants at an upcoming convention sponsored by Lost Mine. Lost Mine has offered to buy 2,400 of the US umbrellas at a price of $20 each. Mohave currently has the excess capacity...
Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a...
Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a company called Lost Mine Industries about producing a special order for a custom umbrella called the Ultimate Shade (US). The special-order umbrellas with the Lost Mine Company logo would be distributed to participants at an upcoming convention sponsored by Lost Mine. Lost Mine has offered to buy 2,400 of the US umbrellas at a price of $20 each. Mohave currently has the excess capacity...
*please show calculations* 1. Royal Company manufactures 20,000 units of Part R-3 each year for use...
*please show calculations* 1. Royal Company manufactures 20,000 units of Part R-3 each year for use in its finished products. At this level of activity, the costs per unit for Part R-3 are as follows: Direct materials $4.80 Direct labor 7.00 Variable manufacturing overhead 3.20 Fixed manufacturing overhead 10.00 Total cost per part 25.00 An outside supplier has offered to sell 20,000 units of Part R-3 to Royal Company for $23.50 per part. If Royal Company accepts the supplier’s offer,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT