Louis industries normally produces and sells 5000 keyboards

Assignment Help Accounting Basics

Reference no: EM13569804

Louis Industries normally produces and sells 5,000 keyboards for personal computers each month. Variable manufacturing costs amount to $24 per unit, and fixed costs are $144,000 per month. The regular sales price of the keyboards is $85 per unit. Louis has been approached by a foreign company that wants to purchase an additional 1,000 keyboards per month at a reduced price. Filling this special order would not affect Louis's regular sales volume or fixed manufacturing costs. On the basis of the above information only, which of the following is NOT true?

a.Neither the fixed manufacturing costs of $144,000 nor the variable manufacturing costs of $24 per unit is relevant to this decision regarding the special order.

b.At the 5,000-unit level of production, Louis's average cost per unit is $52.80.

c.It would not be profitable for Louis to consider the special order at a price less than $48 per unit.

d.At the 6,000-unit level of production, Louis's average cost per unit is $48.

Reference no: EM13569804

Questions Cloud

Jameson company uses a predetermined overhead rate based on : jameson company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs.

Responsibility for the fixed cost volume variance ragan : responsibility for the fixed cost volume variance ragan company expected to sell 400000 of its pagers during 2011. it

In the current year alice reports 150000 of salary income : in the current year alice reports 150000 of salary income 20000 of income from activity x 35000 and 15000 losses from

Non thermal technologies advanced food technology hai i am : hai i am new to this site ltbrgti need to submit that assignment its very important to me. usually i do assignments on

Louis industries normally produces and sells 5000 keyboards : louis industries normally produces and sells 5000 keyboards for personal computers each month. variable manufacturing

Salon company originally issued 3000 shares of 10 par value : salon company originally issued 3000 shares of 10 par value common stock for 90000 . salon subsequently purchases 300

Updraft systems inc makes paragliders for sale through : updraft systems inc. makes paragliders for sale through specialty sporting goods stores. the company has a standard

Which accounting assumption principle information : which accounting assumption principle information characteristic or constraint is the most applicablea. all payments

Langer company has three products a b and c that use common : langer company has three products a b and c that use common facilities. the relevant data concerning these three

User Account

All Pages