题目
题目

SP25 ACCTIS 211 001 Online Quiz #2: Chapters 19, 20 & 21

单项选择题

Madison Mugs Inc. produces ceramic mugs that normally sell for $18 each. The variable cost per mug is $11 and fixed overhead remains unchanged at $5,000 if capacity is not exceeded. A local coffee shop offers to buy 3,000 mugs at $14 each. Filling this special order will incur an extra shipping cost of $1 per mug. Assume that Madison Mugs has enough excess capacity to fill the order. Based on incremental analysis, should Madison Mugs Inc. accept the special order?  Select the best answer: 

选项
A.Accept; net income increases by $6,000.
B.Accept; net income increases by $1,000.
C.Reject; net income decreases by $1,000.
D.Reject; net income decreases by $6,000.
查看解析

查看解析

标准答案
Please login to view
思路分析
Question restatement: Madison Mugs Inc. is considering a special order for 3,000 mugs at $14 each, with an extra shipping cost of $1 per mug. Variable cost per mug is $11, fixed overhead is $5,000 (unchanged with capacity not exceeded), and there is enough excess capacity to take the order. Based on incremental analysis, should Madison Mugs Inc. accept the special order? Option 1: Accept; net income increases by $6,000. - This option al......Login to view full explanation

登录即可查看完整答案

我们收录了全球超50000道考试原题与详细解析,现在登录,立即获得答案。

类似问题

Fancy cookies makes decorated cookies. Each cookie sells for $7. To make one cookie costs $1 in direct materials, $2 in direct labour, $0.10 for plastic wrap packaging and fixed kitchen costs of $600.  Fancy cookies has received a special order from the local school. They would like to order 282 cookies for $4 for a special mother's day fundraiser. Fancy cookies has enough capacity to accept the special order.  If Fancy cookies accepts this special order, how much will the profit increase or decrease by?  If accepting the special order will decrease the profit, make sure you include a minus/negative sign before your answer. Round your answer at the end of the calculation to the nearest dollar. 

AquaCool produces and sells premium bottled water sourced from natural springs. Each bottle sells for $5. It costs $1.20 in variable costs and $1.80 in fixed costs to make each bottle.  AquaCool has received a special order from a local community group. They would like to order 1,107 bottle for $2.16 each. AquaCool has the capacity to make this order.  If AquaCool accepts this special order, how much will the profit increase or decrease by?  Round your answer to the nearest dollar (no decimal places). If accepting the special order will decrease the profit, make sure you include a minus/negative sign before your answer. 

Fancy cookies makes decorated cookies. Each cookie sells for $7. To make one cookie costs $1 in direct materials, $2 in direct labour, $0.10 for plastic wrap packaging and fixed kitchen costs of $600.  Fancy cookies has received a special order from the local school. They would like to order 245 cookies for $4 for a special mother's day fundraiser. Fancy cookies has enough capacity to accept the special order.  If Fancy cookies accepts this special order, how much will the profit increase or decrease by?  If accepting the special order will decrease the profit, make sure you include a minus/negative sign before your answer. Round your answer at the end of the calculation to the nearest dollar. 

Question at position 30 Mae Refiners, Incorporated, processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs $60 to buy from farmers and $13 to crush in the company's plant. Two intermediate products, cane fiber and cane juice, emerge from the crushing process. The cane fiber can be sold as is for $29 or processed further for $13 to make the end product industrial fiber that is sold for $61. The cane juice can be sold as is for $40 or processed further for $28 to make the end product molasses that is sold for $67. Which of the intermediate products should be processed further? Cane fiber should be processed into industrial fiber; Cane juice should be processed into molasses.Cane fiber should NOT be processed into industrial fiber; Cane juice should NOT be processed into molasses.Cane fiber should be processed into industrial fiber; Cane juice should NOT be processed into molasses.Cane fiber should NOT be processed into industrial fiber; Cane juice should be processed into molasses.

更多留学生实用工具

加入我们，立即解锁 海量真题 与 独家解析，让复习快人一步！