Wtches inc makes a watch selling for 50 per unit

Reference no: EM13604046

Watches Inc. makes a watch selling for $50 per unit. Operating within its relevant range they have excess capacity to make 200,000 watches. The unit costs for financial statement purposes are $10 for direct materials, $7 for direct labor, $5 for variable overhead and $12 in fixed costs. The company has been offered a special order for 5,000 military watches that are identical to the current product but will require an additional $2 each for a special fitting. What is the incremental breakeven selling price per unit for the special order? a.$34 b.$24 c.$22 d. $39 e. None of the above values are correct. Using the information from the previous question, what should be the special order price per watch for the company to increase its' profits by $25,000?

Reference no: EM13604046

Questions Cloud

Describe the business-type activities of a state or local : describe the business-type activities of a state or local government and explain how and why accounting and financial

Fixed marketing expense totaled 13000 and fixed : 1.patricia company produces two products x and y which account for 60 percent and 40 percent respectively of total

The shirt works sells a large variety of tee shirts and : the shirt works sells a large variety of tee shirts and sweatshirts. steve hooper the owner is thinking of expanding

Preparing a work sheet an adjusted trial balance amount is : preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. the

Wtches inc makes a watch selling for 50 per unit : watches inc. makes a watch selling for 50 per unit. operating within its relevant range they have excess capacity to

During the year chester had the following transactions : during the year chester had the following transactions involving capital assets gain on the sale of an arrowhead

Patriot paid dividends of 39000 during the year there were : the following changes in patriots corp account balances occured during 2011 assets 267000 increaseliabilities 81000

Anita age 12 is claimed as a dependent by her parents she : anita age 12 is claimed as a dependent by her parents. she earned interest income of 1200 during the year. does she

Ryan co purchased a machine on july 1 2011 the machine : ryan co purchased a machine on july 1 2011. the machine cost 250000 and has a salvage value of 10000 and a useful life

User Account

All Pages