Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2019, the company incurred $344,000 of costs to produce 40,000 gallons of the chemical. The selling price of the chemical is $12.00 per gallon. T

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Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2019, the company incurred $344,000 of costs to produce 40,000 gallons of the chemical. The selling price of the chemical is $12.00 per gallon. T

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Answer 1

Answer #1

Increase in sales price	3.5	(15.50-12)
	Increase in expense
	Direct material	-1.7
	Direct labor	-0.6
	Variable overheads	-0.5
	Net increase/decrease	0.7

	Per unit incremental to sale will further process is .7 per unit

answered by: ANURANJAN SARSAM

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Answer 2

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Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2019, the company incurred $344,000 of costs to produce 40,000 gallons of the chemical. The selling price of the chemical is $12.00 per gallon. T

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Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2019, the company incurred $344,000 of costs to produce 40,000 gallons of the chemical. The selling price of the chemical is $12.00 per gallon. T

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Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2019, the company incurred $344,000 of costs to produce 40,000 gallons of the chemical. The selling price of the chemical is $12.00 per gallon. T