![Raekwon3232](/avatars/26817.jpg)
Raekwon3232
12.03.2021 •
Business
SureLock Manufacturing Co. makes and sells several models of locks. The cost records for the ZForce lock show that manufacturing costs total $23.25 per lock. An analysis of this amount indicates that $13.40 of the total cost has a variable cost behavior pattern, and the remainder is an allocation of fixed manufacturing overhead. The normal selling price of this model is $31.00 per lock. A chain store has offered to buy 12,000 ZForce locks from SureLock at a price of $16.25 each to sell in a market that would not compete with SureLock's regular business. SureLock has manufacturing capacity available and could make these locks without incurring additional fixed manufacturing overhead.
Required:
a. Calculate the effect on SureLock's operating income of accepting the order from the chain store.
b. If SureLock's costs had not been classified by cost behavior pattern, is it likely that a correct special order analysis would have been made?
Yes
No
Solved
Show answers
More tips
- G Goods and services Is an Air Ionizer Necessary for Your Home?...
- C Construction and repair How to Choose the Best Underfloor Heating?...
- C Computers and Internet How to Get Rid of Windows Genuine Check?...
- C Computers and Internet War of Social Media: Which Platform is the Leader?...
- H Health and Medicine How to Treat the Flu: A Comprehensive Guide...
- O Other What is a Disk Emulsifier and How Does it Work?...
- F Family and Home What does a newborn need?...
- F Family and Home Choosing the Right Car Seat for Your Child: Tips and Recommendations...
- F Food and Cooking How to Get Reconfirmation of Registration?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
Answers on questions: Business
- E English Vot e Smith for president ! She s the best hope for our futurel This is an example of which propaganda techniqueA. bandwagon B. name calling C. glittering generalities...
- H History Will mark as what did columbus assume about american indians when he first encountered them in 1492? check all of the boxes that apply. a that american indians were friendly...
- C Chemistry What is the empirical formula of a compound if a sample contains 5.97 grams of carbon and 0.99 grams of hydrogen?...
Ответ:
The answer is "".
Explanation:
In point a:
Operating profits of SureLock to recognize the order:
In point b:
In this question the second point is false Since losses of SureLock were not classified as per the cost pattern of behavior, a proper custom-made analysis is probably to be performed.
Ответ: