Black tool company has a production capacity of 1500 units

Reference no: EM13486144

1.Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified?

Fixed cost within relevant range
Variable
Mixed
Variable cost within relevant range

2.Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms?

Quantitative analysis
Account analysis
Conference
Industrial engineering

3.Black Tool Company has a production capacity of 1,500 units per month, but production is only 1,250 units. The manufacturing costs are $60 per unit and marketing costs are $16 per unit. Doug Hall offers to purchase 250 units at $76 each for the next five months. Should Black accept the one-time-only special order if only absorption-costing data are available?

Yes, since operating profits will most likely increase.
No, since only the employees will benefit.
No, the company will only break even.
Yes, good customer relations are essential.

Reference no: EM13486144

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