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A company has been offered a special order to sell 1 , 0 0 0 units of a product at a price of $ 5
A company has been offered a special order to sell units of a product at a price of $ per unit. The normal selling per unit is $ The company has spare operating capacity and can typically produce standard units using direct materials that cost $ per unit and direct labor costs of $ per unit. However, the firm can get a volume discount on materials which will lower the perunit materials cost by $
What will be the effect on net income from accepting the special order?
$ increase
$ decrease
$ decrease
$ increase
A retailer is trying to choose how to allocate square feet of floor space and is considering two different product options. Both products require the full square feet, so the retailer cannot mix and match between the two products, making floor space the scarce resource.
Product A requires square feet per unit and costs $ per unit. The retailer can sell Product A for $ per unit and sell units per month.
Product B requires square feet per unit and costs $ per unit. The retailer can sell product B for $ per unit and sell units per month.
Which product should the retailer stock and what will be its annual effect on profits given the retailer's scarcity of floor space?
Product B and $
Product A and $
Product B and $
Product A and $
A company makes two products: Product A and Product B The information for the two products is as follows:
Product A Product B
Selling Price $ $
Material $ $
Labor $ $
Variable Costs $ $
Material is a scarce resource. Product A takes two pounds of material and Product B takes four pounds. Labor takes one hour for Product A and three hours for Product B
How much would the company be willing to pay for one more pound of materials?
$
$
$
$
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