Solution-What is the opportunity cost if decab accepts

What is the opportunity cost if decab accepts special order

Reference no: EM132812805

Decab Co. makes and sells electric fans. Each fan regularly sells for $42. Product cost data per fan is shown below.

Direct Materials $8
Direct Labor $9
Manufacturing OH (80% variable and 20% unavoidable fixed) $10

Problem 1: A special order has been received by Decab for a sale of 25,000 fans to an overseas customer. The special order would require $4 per fan for shipping. Decab has a capacity to produce 120,000 fans per period. Decab is now selling 120,000 fans through regular channels each period, which requires $1 per fan for shipping. What is the opportunity cost if Decab accepts the special order?

Reference no: EM132812805

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What is the opportunity cost if decab accepts special order

Reference no: EM132812805

Reference no: EM132812805

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