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Question - A manufacturer has been asked to fill a special order at $7.25 per unit. The regular price is $10 per unit. No other use of the currently idle capacity can be found. The manufacturer's usual variable costs per unit are $3.50 for direct materials, $2.00 for direct labour, $1.00 for variable overhead, and $0.50 for sales commission. No sales commission would be paid on this special order. The average fixed overhead cost per unit is $0.25. Assume there is no excess capacity (i.e., the company can sell every unit that it produces to regular customers). Under the general decision rule, determine the minimum price per unit for this special order?
Compute the contribution margin per machine-hour. If there is a machine breakdown, which model is the most profitable to produce? Why?
Determine the cost of the work in process inventory on January 31.
1,500 units at $35 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $27,000, the degree of operating leverage is
The board of directors declared cash dividends total $168,000 during the year. What was the amount of cash payments to stockholders
Group, your thoughts - responsibility for the things that happen around us, despite our black and white job description
If income tax expense for the current year was $50,600 and income tax payable decreased by $5,500, what was the amount of cash payments for income taxes
The unit variable cost is $90, and the total monthly fixed costs are $300,000. How much is Weatherspoon's contribution margin ratio?
Dollmaker manufactures dolls. The sales price of a doll is $15, and the variable cost is $7 per doll. What is the contribution margin ratio
Explain an examination of the accounting records of Laredo Company disclosed a high contribution margin ratio and production
A cooked, uncarved turkey costs $15 to prepare. Use incremental analysis to determine which products Richard V. Meats should offer.
What the Best Investment using capital rationing? Using capital rationing to make capital investment decisions Hudson Manufacturing
If in the previous exercise the total costs charged to the department amounted to $960,000, what is the cost of the units completed and transferred out
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