Last year, X Company sold 67,800 units of its only product for $18.00 each. Total costs were as follows: Cost of good...
Last year, X Company sold 67,800 units of its only product for $18.00 each. Total costs were as follows:
| Cost of goods sold | |
| Variable | $397,308 |
| Fixed | 126,108 |
| Selling and administrative | |
| Variable | $73,902 |
| Fixed | 94,242 |
At the end of the year, a company offered to buy 4,660 units of the
product but only for $12.00 each. X Company had the capacity to
produce the additional units, and even though there would have been
no additional selling and administrative costs, it rejected the
offer.
5. If X Company had accepted the special order, firm profits would
have increased by
| Tries 0/3 |
6. X Company's production manager thought that the special order units might have required additional direct material and direct labor costs per unit of $0.72 and $0.21, respectively, and the rental of special equipment for $2,000. The combined effect of these changes would have been to reduce the special order profit by
| Tries 0/3 |
7. X Company's marketing manager felt that in order for regular sales to continue at 67,800 units this year, the company would have had to reduce the regular selling price this year to $17.54. The result of this price reduction would have been to reduce X Company's profits this year by
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Last year, X Company sold 67,800 units of its only product for $18.00 each. Total costs were as follows: Cost of good...
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Last year, X Company sold 64,900 units of its only product for $18.00 each. Total costs...
Last year, X Company sold 64,900 units of its only product for
$18.00 each. Total costs were as follows:
Cost of goods sold
Variable
$425,095
Fixed
145,376
Selling and administrative
Variable
$86,966
Fixed
79,827
At the end of the year, a company offered to buy 4,170 units of the
product but only for $12.00 each. X Company had the capacity to
produce the additional units, and even though there would have been
no additional selling and administrative costs, it rejected...
Last year, X Company sold 67,500 units of its only product for $17.00 each. Total costs were as follows: Cost of good...
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Last year, X Company sold 67,200 units of its only product for $17.00 each. Total costs...
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produce the additional units, and even though there would have been
no additional selling and administrative costs, it rejected the
offer.
5. If X Company had accepted the special order, firm profits would
have...
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Last year, X Company sold 64,900 units of its only product for
$18.00 each. Total costs were as follows:
Cost of goods sold
Variable
$425,095
Fixed
145,376
Selling and administrative
Variable
$86,966
Fixed
79,827
At the end of the year, a company offered to buy 4,170 units of the
product but only for $12.00 each. X Company had the capacity to
produce the additional units, and even though there would have been
no additional selling and administrative costs, it rejected...
Last year, X Company sold 67,200 units of its only product for
$17.00 each. Total costs were as follows:
At the end of the year, a company offered to buy 4,780 units of
the product but only for $12.00 each. X Company had the capacity to
produce the additional units, and even though there would have been
no additional selling and administrative costs, it rejected the
offer.
5. If X Company had accepted the special order, firm profits would
have...
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