Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rippey corporation manufactures a single product w

Rippey Corporation manufactures a single product with the following unit costs for 5,000 units: ...

60.1K

Verified Solution

Question

Accounting

Rippey Corporation manufactures a single product with the following unit costs for 5,000 units:

Direct materials

$ 60

Direct labor

30

Factory overhead (40% variable)

90

Selling expenses (60% variable)

30

Administrative expenses (20% variable)

15

Total per unit

$225

Recently, a company approached Rippey Corporation about buying 1,000 units for $225. Currently, the models are sold to dealers for $412.50. Rippey's capacity is sufficient to produce the extra 1,000 units. No additional selling expenses would be incurred on the special order.

Required:

A.

What is the profit earned by Rippey Corporation on the original 5,000 units?

B.

Should Rippey accept the special order if its goal is to maximize short-run profits? How much will income be affected?

C.

Determine the minimum price Rippey would want to receive in order to increase profits by $7,500 on the special order.

D.

When making a special-order decision, what qualitative aspects of the decision should Rippey Corporation consider?

.

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

2 Water is all around us on land in oceans and throughout the atmosphere Water...

Biology
Q

A particle undergoes a constant acceleration of 4.00 m/s2. After a certain amount of time, its...

Physics
Q

Explain using an example why computing lift ratio is better in assessing soundness of an association...

Mechanical Engineering
Q

Delta Company produces a single product. The cost of producing and selling a single unit of...

Accounting
Q

Chramones Spinde hers energe from the Chenones continue to wpears te Nuclear engede breaks down...

Biology
Q

Where will the image of this object be located C a between F and C...

Physics
Q

What is the potential difference across the terminals of a battery if 45 kJ of...

Physics
Q

Luther Corporation Consolidated Income Statement Year ended December 31 in millions 2022 610 1 500...

Basic Math
Q

Find the derivative of the function dy dx y 8 x 7x 3 IN 7

Calculus
Q

provide an additional example of an adjusting entry for an accrual or a deferral when...

Accounting
Q

To what extent (If any) should sustainability concerns and issues be incorporated in accounting analyses?...

Accounting
Q

On February 5,2021, Fast Rental Corporation's board of directors declared a dividend of $0.25, to...

Accounting