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Devry ACCT346 Week 5 Assignment




Question;DeVry University;ACCT346 Weekly Assignment;Week 5;Directions: Your assignment;this week is to answer the below three questions. Please note that question #1 has 2 parts;part a and part b and question #2 has 3 parts, part a, part b and part;c. Please show your work for full;credit and use the box provided.;Please add more rows or columns to the box if needed.;1. Palmer's Gourmet Chocolates produces and;sells assorted boxed chocolates. The unit selling price is $50, unit;variable costs are $25, and total fixed costs are $2,000.;1a.;How many boxes of chocolates must Palmer's Gourmet Chocolates sell to breakeven?;1b. What are breakeven sales in dollars?;2. Extreme Sports received a special order;for 1,000 units of its extreme motorbike at a selling price of $250 per;motorbike. Extreme Sports has enough extra capacity to accept the order. No;additional selling costs will be incurred. Unit costs to make and sell this;product are as follows: Direct materials, $100, direct labor, $50, variable;manufacturing overhead, $14, fixed manufacturing overhead, $10, and;variable selling costs, $2.;2a. List the relevant costs.;2b. What will be the change in operating;income if Extreme Sports accepts the special order?;2c. Should Extreme Sports accept the special;order? Why or why not?;3. Totally Technology manufactures Cameras;and Video Recorders. The company's product line income statement follows;Camera;Video Recorder;Total;Sales revenue;$3,00,000;$1,00,000;$4,00,000;Cost of goods sold;Variable;$75,000;$49,000;$1,24,000;Fixed;$82,000;$28,000;$1,10,000;Total cost of goods sold;$1,57,000;$77,000;$2,34,000;Gross profit;$1,43,000;$23,000;$1,66,000;Marketing and administrative;expenses;Variable;$25,000;$28,000;$53,000;Fixed;$32,000;$19,000;$51,000;Total marketing and administrative;expenses;$57,000;$47,000;$1,04,000;Operating income (loss);$86,000;(24,000);$62,000;Management is considering;discontinuing the Video Recorder product line. Accountants for the company;estimate that discontinuing the Video Recorder line will decrease fixed;cost of goods sold by $10,000 and fixed marketing and administrative;expenses by $4,000.;Prepare an analysis supporting your;opinion about whether or not the Video Recorder product line should be;discontinued.


Paper#39252 | Written in 18-Jul-2015

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