Question
A company is operating at less than full capacity. It is contemplating whether a special order should be accepted. The order will not Impact regular
A company is operating at less than full capacity. It is contemplating whether a special order should be accepted. The order will not Impact regular sales. If the company accepts the special order, which of the following will occur?
Incremental costs will not change since foxed costs will stay the same.
Net Income will not change because no incremental revenues will be generated
Net Income will decrease if fored and variable costs increase
Net Income will increase if the special unit selling price exceeds the unit variable
Bramble, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows
Direct materials and direct labor $11
Variable overhead 5
Fixed overhead 8
Total $24
Saran Company has contacted Bramble with an offer to sell it 5600 wickets for $18 each Of Bramble's $8 per unit fixed cost, $5 per unit is unavoidable Should Bramble make or buy the wickets and why?
Buy because the cost savings is $16800
Make because the cost savings is $5600
Buy because the cost savings is $5600
Make because the cost savings is $11200
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