Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company makes stuffed golden retriever toys. The company has 447 units in inventory that somehow were manufactured with only one ear. The normal selling

image text in transcribed
A company makes stuffed golden retriever toys. The company has 447 units in inventory that somehow were manufactured with only one ear. The normal selling price of the stuffed toys is $22.29 each. The total cost of producing all of the one eared toys was $4.716. The company has two choices Option 1: Rework the golden retrievers to add the missing ear, at a cost of $141 per unit. Option 2: They have identified a buyer for the one eared toys. This buyer will pay them $18.94 per unit. What is the DIFFERENCE between the incremental profit of selecting Option 1 or Option 2? Enter your answer in TOTAL for ALL units. Assume they sell all of the units under either option. Hint: Calculate the incremental profit for each option. Enter the absolute value of the difference between those two numbers. (in other words, don't put a minus or plus sign in front of the number when you enter it in the box below) Enter your answer to two decimal places. Do not round any intermediate calculations. Question 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketing Audit Checklists A Guide To Effective Marketing Resource Realization

Authors: Aubrey Wilson

1st Edition

0077077601, 978-0077077600

More Books

Students also viewed these Accounting questions

Question

Understanding Groups

Answered: 1 week ago