Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 8-4 pina colada corporation has the exces

Exercise 8-4 Pina Colada Corporation has the excess manufacturing capacity to a special order from...

70.2K

Verified Solution

Question

Accounting

image
image
Exercise 8-4 Pina Colada Corporation has the excess manufacturing capacity to a special order from Nash, Inc. Using Pina Colada's normal costing process, variable costs of the special order would be $15.400 and fixed costs would be $27,920. Of the fixed costs, $5,300 would be for unavoidable overhead costs, and the remainder for rent on a special machine needed to complete the order. What is the minimum price Pina Colada should quote to Nash? Minimum price $ Click if you would like to Show Work for this question: Open Show Work Bridgeport Manufacturing has an annual capacity of B0,500 units per year. Currently, the company is making and selling 78,300 units a year. The normal sales price is $103 per unit, variable costs are $65 per unit, and total fixed expenses are $2,000,000. An out-of-state distributor has offered to buy 5,200 units at $75 per unit. Bridgeport's cost structure should not change as a result of this special order By how much will Bridgeport's income change if the company accepts this order? Bridgeport' net income will decrease by se fit accepts the special order. Click if you would like to Show Work for this question: Open Show Works

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students