Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. jcbilco manufacturing produces and sells oil filte

JCBilco Manufacturing produces and sells oil filters for $3.30 each. A retailer has offered to...

60.1K

Verified Solution

Question

Accounting

image
JCBilco Manufacturing produces and sells oil filters for $3.30 each. A retailer has offered to purchase 10,000 oil filters for $3.10 per filter. Of the total manufacturing cost per filter of $2.10, 1.40 is the variable manufacturing cost per filter. For this special order, JCBilco would have to buy a special stamping machine that costs $6,000 to mark the customer's logo on the special-order oil filters. The machine would be scrapped when the special order is complete. This special order would use manufacturing capacity that would otherwise be idle. No variable nonmanufacturing costs would be incurred by the special order. Regular sales would not be affected by the special order. Would you recommend that JCBilco accept the special order under these conditions? Complete the following incremental analysis to help you make your recommendation. (Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (10,000 units) Revenue from special order Less variable expondo associated with the order an Contribution margin Increase (decrease in operating income from the special order

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

Q

if one of the lobes of the cerebrum were damaged, would the person lose all functions...

Medical Sciences
Q

Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $40,000 2...

Finance
Q

The figure below shows a Ferris wheel that rotates five times each minute. It carries each...

Physics
Q

For the given function f(x) = cos(x), let x0 = 0, x1 = 0.25, and x2...

Advance Math
Q

Given the following details, what are the seller's net proceeds from a stock sale and an...

Accounting
Q

D A nonconducting sphere of radius 10 cm is charged uniformly with a density of...

Physics
Q

For f x x and g x 6x 5 find the following composite functions and...

Calculus
Q

Form a polynomial f x with real coefficients having the given degree and zeros Degree...

Calculus
Q

Winners Circle, Inc., manufactures medals for winners of athletic events and other contests. Its manufacturing...

Accounting
Q

Why are the risks involved in international credit management more complex than those associated with...

Accounting
Q

The production budget for Manner Company shows units to be produced as follows: July, 670;...

Accounting
Q

anyone can write me a report about financial decicions about 5 rounds in capsim?

Finance