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28 Sep 2019
ABC corp received a request for a special order of 6,000 units ofproduct y45 for $13.70 each. The product cost is $11.50, dterminedas follows:
Dir Materials: 2.50
Dir Labor: 1.90
Variable Manuf Overhead: 2.30
Fixed Manuf Overhead: 4.80
Direct labor is a variable cost. The special order would haveeffect on the company's total fixed manufacturing overhead costs.Customer sould like modifications made to the product that wouldincrease variable cost by $8.10 per unit and would require aninvestment of $20,000 in special molds that would have no salvagevalue.
This special order would have no effect on the comany's othersales. The company has ample spare capacity for producing thespecial order. if this order is accepted, the company's netoperating income would increase (decrease) by?
ABC corp received a request for a special order of 6,000 units ofproduct y45 for $13.70 each. The product cost is $11.50, dterminedas follows:
Dir Materials: 2.50
Dir Labor: 1.90
Variable Manuf Overhead: 2.30
Fixed Manuf Overhead: 4.80
Direct labor is a variable cost. The special order would haveeffect on the company's total fixed manufacturing overhead costs.Customer sould like modifications made to the product that wouldincrease variable cost by $8.10 per unit and would require aninvestment of $20,000 in special molds that would have no salvagevalue.
This special order would have no effect on the comany's othersales. The company has ample spare capacity for producing thespecial order. if this order is accepted, the company's netoperating income would increase (decrease) by?
Dir Materials: 2.50
Dir Labor: 1.90
Variable Manuf Overhead: 2.30
Fixed Manuf Overhead: 4.80
Direct labor is a variable cost. The special order would haveeffect on the company's total fixed manufacturing overhead costs.Customer sould like modifications made to the product that wouldincrease variable cost by $8.10 per unit and would require aninvestment of $20,000 in special molds that would have no salvagevalue.
This special order would have no effect on the comany's othersales. The company has ample spare capacity for producing thespecial order. if this order is accepted, the company's netoperating income would increase (decrease) by?
Hubert KochLv2
28 Sep 2019