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13 19 Pet Food C ompany has the capacity to produce 40,000 units but is currently selling only 30,000 units at a price of $24.00
13 19 Pet Food C ompany has the capacity to produce 40,000 units but is currently selling only 30,000 units at a price of $24.00 per unit. Unit costs are as follows: Direct Material Direct Labor Variable MOH Variable Selling Fixed manufacturing OH s 9.20 per unit $ 3.45 per unit s 2.55 per unit s 1.00 per unit S 5.00 per unit The company is interested in using its idle (excess) capacity and is seeking orders from foreign customers for which they are willing to accept a reduced price. Copper Cat Corporation has requested to buy 9.000 units for $22.00 eac Copper Cat would like some modifications made that would increase the variable costs by $4.00 per unit and would require a one-time investment of $6,000 in special machines that would have no salvage value. Variable selling expenses would also continue. As an alternative, Grumpy Dog, Inc. has also expressed an interest in purchasing units. Grumpy s would require no further modification, and buy 11,000 units (all or nothing) at a price of $19.00 per unit. These unit What is the there would be no variable selling expenses. Unfortunately, the company cannot take both o financial advantage of accepting Grumpy Dog's order instead of Copper Cat's offer? 31,600 17,800 23,800 25,600 A. $ B. S C. S D. S E. None of the above
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