Homework Answers
Correct answer----------(B) Increase by $45,400
Working
| financial advantage (disadvantage) of accepting the special order | |
| Additional Revenue from offer (8200 x $36) | $ 295,200.00 |
| Less: Total Additional cost due to acceptance of offer | $ 249,800.00 |
| Financial Advantage | $ 45,400.00 |
.
| Calculation of Additional Cost of Order | ||
| Per Unit | Total | |
| Variable manufacturing cost | $ 24.00 | $ 196,800.00 |
| Variable marketing and admin cost | $ 5.00 | $ 41,000.00 |
| Additional fixed cost | $ 12,000.00 | |
| Total Additional cost due to acceptance of order | $ 29.00 | $ 249,800.00 |
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how do i solve Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, b...
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do i solve
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Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: EB (Click the icon to view the data) If a special sales order is accepted for 2,800 widgets at a price of $36 per unit, fixed costs increase by $9,000, and variable marketing and administrative costs for that order are $3 per unit, how would operating income be...
how
do i solve
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