Moonbeam company manufactures toasters. for the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity:

sales (350,800 units) $4,372,000
cost of goods sold 2,608,000
gross profit 1,764,000
operating expenses 839,100
net income $924,900

cost of goods sold was 69% variable and 31% fixed; operating expenses were 79% variable and 21% fixed.

in september, moonbeam company receives a special order for 24,200 toasters at $7.63 each from luna company of ciudad juarez. acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.

(a)

prepare an incremental analysis for the special order. (round computations for per unit cost to 4 decimal places, e. g. 15.2567 and all other computations and final answers to the nearest whole dollar, e. g. 5,725. enter negative amounts using either a negative sign preceding the number e. g. -45 or parentheses e. g. (

reject
order accept
order net income
increase
(decrease)
revenues $
$
$
cost of goods sold
operating expenses
net income $
$
$

The silverside company is considering investing in two alternative projects: project 1 project 2 investment $500,000 $240,000 useful life (years) 8 7 estimated annual net cash inflows for useful life $120,000 $40,000 residual value $32,000 $10,000 depreciation method straightminusline straightminusline required rate of return 11% 8% what is the accounting rate of return for project 2? (round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, x.xx%.)

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?

One country has a comparative advantage over another country in the production of a good if ithas a curved production possibilities curve and the other country has a linear production possibilities curve.has lower fixed costs than the other country. has a linear production possibilities curve and the other country has a curved production possibilities curve.is a lower opportunity cost producer of the good.