Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader

Phone no. Missing!

Please enter phone for your order updates and other important order related communication.

Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!

ACC202 Management Accounting

tag 0 Download 6 Pages / 1,484 Words tag 22-07-2021
  • Course Code: ACC202
  • University: Kings Own Institute
    icon

    MyAssignmentHelp.com is not sponsored or endorsed by this college or university

  • Country: Australia

Question:

The Citrus Company  produces quality fruit.  It has been producing and selling 40,000 boxes per month during the Spring and Summer months. During  the Autumn and Winter months it has been noticed that only 30,000 boxes are sold.The Citrus Company  provides the following information and has asked you to provide advice on the issues raised in each of the following parts:

Manufacturing costs
Direct material                                                         $4.00 per box
Direct labour                                                               2.00 per box
Variable overhead                                                      0.80 per box
Fixed overhead                                                         $10,000
Marketing costs
Variable                                                                       $0.50 per unit
Fixed                                                                            $15,000

The Citrus Company  has been selling these boxes of fruit  for $9.50 each and has asked you to provide answers to the following.Each part is to be considered  independently  of the others.
Required :

(a) Calculate the monthly profit during a Summer month when all  40,000 boxes  produced in a month  are sold .

(b) A request has come from overseas to supply 5,000 boxes of fruit per month during the Autumn and Winter months at a price of $7.50 per box .If this  request is accepted it would cost an extra $0.40 per box for freight and a one off cost of landing cost of $1000 ..Should this one off request be accepted based on profit alone What other factors should be considered 

(c) Another request has come in the form of a long term government contract which wants you to supply 10,000 boxes within the country per month for $8 per box .This contract would be for 10,000 boxes each month for the year .Should this offer be accepted Provide reasons for your decision.

(d)The Citrus Company has had another request from an outside supplier to supply 8,000 boxes of fruit year round(each month) for a price of $7.80 per box.The Citrus Company would incur additional freight  costs of $0.20 per box but no other additional costs .Should the Citrus Company accept this offer  on financial grounds What other factors might it consider

(e)The Citrus Company  has an offer to rent out its property to the government so that affordable  housing can be built. The government would pay the Citrus Company  Parker $60,000 per month ,assuming it would use the property on an ongoing basis .If Citrus Company sells 40,000 boxes during the Spring and  Summer months and 30,000 boxes during the Autumn and Winter months should Citrus Company accept the offer on  purely financial grounds ..Show calculations to support your answer.

Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

Upload
Unique Document

Document
Under Evaluation

Get Money
into Your Wallet

Total 6 pages

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2021). ACC202 Management Accounting. Retrieved from https://myassignmenthelp.com/free-samples/acc202-management-accounting/government-contract.html.

My Assignment Help (2021) ACC202 Management Accounting [Online]. Available from: https://myassignmenthelp.com/free-samples/acc202-management-accounting/government-contract.html
[Accessed 03 December 2022].

My Assignment Help. 'ACC202 Management Accounting' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/acc202-management-accounting/government-contract.html> accessed 03 December 2022.

My Assignment Help. ACC202 Management Accounting [Internet]. My Assignment Help. 2021 [cited 03 December 2022]. Available from: https://myassignmenthelp.com/free-samples/acc202-management-accounting/government-contract.html.


Stuck on Any Question

Our best expert will help you with the answer of your question with best explanation.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

Phone no. Missing!

Please enter phone for your order updates and other important order related communication.

loader
250 words
Error goes here

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

We Can Help!

Get top notch assistance from our best tutors !
Excel in your academics & career in one easy click!

icon

Other Samples

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

icon

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?