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44. Peter Senen Company is a manufacturer of electronic switches. One of their products, Petesy Switch is used as a component of most electrical appliances
44. Peter Senen Company is a manufacturer of electronic switches. One of their products, Petesy Switch is used as a component of most electrical appliances Petesy Switch has the following financial data per unit. P180 Selling price Vanable costs: Materials Labor Factory Overhead Shipping and handling Fixed costs: Factory overhead Selling and admin Total P 24 18 15 3 P60 P 36 14 50 P110 During the month, Peter Senen Company received a special, one-time order for 1,500 units of Petesy Switch. Assume that the excess capacity available for the special order is only 1,000 units so that if the order were accepted, Peter Senen Company would have to reduce sales to regular customers. What is the minimum price for this special order? a. P180 c. P 60 b. P110 d. P100 5 45. Ethel Company produces and sells a product with the following unit cost: P10 6 4 Prime costs Variable indirect manufacturing costs Fixed indirect manufacturing costs Variable manufacturing costs Fixed marketing costs Total unit costs 8 3 P 31 The company is considering whether to continue producing the product or simply buy it from outside supplier. It has found a supplier which can produce the product per the company's specifications. If the company buys the product, variable marketing costs would be reduced by 60% but fixed marketing costs would remain the same. What is the maximum unit price that the company would be willing to pay the supplier without decreasing its operating income? a. P31 b. P24. C. P20.80 d. P19.20
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