Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Kilang Merah involves in making bottled fruit juices called Maniss. Currently, the factory is operating below its full capacity. Below is the financial result
2. Kilang Merah involves in making bottled fruit juices called Maniss. Currently, the factory is operating below its full capacity. Below is the financial result for year 2020: RM RM Sales (18,000 bottles) 27,000 Variable production cost 10,800 Fixed production cost 4,500 Total production cost 15,300 Selling cost 4.000 Total cost 19,300 Net profit 7.700 A direct seller offered to purchase 7,000 bottles of Maniss at RM0.90 per bottle. The management is unwilling to accept the order because it is not only below the selling price but also below its production cost per unit. 7/9 BBMA3203/JANUARY 2021 (a) Determine whether the company should accept or reject the order of Maniss. Show your computations. (15) (b) Explain the relevant qualitative factors that need to be considered when making decision on whether to accept or reject the special order for Maniss. (5) (Total / Jumlah: 20 )
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started