Question
1-Required: A firm produces product (X), the selling price is $ 20 per unit, and the plant capacity is 40,000 units. The current production and
1-Required: A firm produces product (X), the selling price is $ 20 per unit, and the plant capacity is 40,000 units. The current production and sales volume is 30,000 units, and by analyzing the cost elements, it became clear that they are as follows (the amounts are in dollars): To get the result, use the accounting rule: -Gross Contribution Margin = Sales Revenue - Total Variable Costs
-Gross Contribution Margin = Unit Sale Price * Number of Units - Variable Cost * Number of Units - Net Profit = Gross Contribution Margin - Total Fixed Costs
Unit variable cost: Direct materials=5 Industrial labor cost=1 Additional industrial costs=2 Marketing costs=4 Unit fixed cost: Industrial labor cost=2 Additional industrial costs=3 Marketing costs=3
2-Required: A customer submitted an order to purchase 3000 units at a price of $ 12 per unit, and the purchase would be directly from the factory, and the production of this quantity required the company to pay $ 2000 to restart the automatic equipment. Does the company advise to accept this order? Support your opinion with the necessary accounts. To get the result, use the accounting rule: -Gross Contribution Margin = Sales Revenue - Total Variable Costs
-Gross Contribution Margin = Unit Sale Price * Number of Units - Variable Cost * Number of Units - Net Profit = Gross Contribution Margin - Total Fixed Costs1-Required: A firm produces product (X), the selling price is $ 20 per unit, and the plant capacity is 40,000 units. The current production and sales volume is 30,000 units, and by analyzing the cost elements, it became clear that they are as follows (the amounts are in dollars): To get the result, use the accounting rule: -Gross Contribution Margin = Sales Revenue - Total Variable Costs
-Gross Contribution Margin = Unit Sale Price * Number of Units - Variable Cost * Number of Units - Net Profit = Gross Contribution Margin - Total Fixed Costs
Unit variable cost: Direct materials=5 Industrial labor cost=1 Additional industrial costs=2 Marketing costs=4 Unit fixed cost: Industrial labor cost=2 Additional industrial costs=3 Marketing costs=3
2-Required: A customer submitted an order to purchase 3000 units at a price of $ 12 per unit, and the purchase would be directly from the factory, and the production of this quantity required the company to pay $ 2000 to restart the automatic equipment. Does the company advise to accept this order? Support your opinion with the necessary accounts. To get the result, use the accounting rule: -Gross Contribution Margin = Sales Revenue - Total Variable Costs
-Gross Contribution Margin = Unit Sale Price * Number of Units - Variable Cost * Number of Units - Net Profit = Gross Contribution Margin - Total Fixed Costs
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