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Acctg 4B rh 19 Test 5. BTCO is currently operating at 80% capacity and producing 24,000 units. Current revenue and cost information relating to this
Acctg 4B rh 19 Test 5. BTCO is currently operating at 80% capacity and producing 24,000 units. Current revenue and cost information relating to this level of production is shown in the table below $600,000 $216,000 $264,000 $72,000 144,000 Sales Direct material Direct labor Variable overhead Fixed overhead The company has been approached by a customer with a request for a 2000-unit special order What is the minimum per unit sales price that management would accept for this order if the company wishes to increase current profits? A. Any amount over $23 per unit. B. Any amount over $17 per unit. C. Any amount over $21 per unit D. Any amount over $13 per unit. E. Any amount over $22 per unit. 6. Given the following data, calculate the total product cost per unit under absorption costing Direct labor Direct materials Overhead $3.50 per unit $1.25 per unit Total variable overhead Total fixed overhead $41,400 $150,000 Expected units to be produced 18,000 units $4.75 per unit $7.05 per unit $13.08 per unit $15.38 per unit $16 per unit A. B. C. D. E. Using the data below, compute the net income using variable costing. Assume 24,000 units were sold and 30,000 units were produced. 7. Per Unit S32 Sales price Direct material Direct labor Variable overhead Fixed overhead $144,000 A. $43,200 B. C. S90.000 D. $100,800 E. None of the above. $72,000
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