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Alpha Company has a current production level of 20,000 units per month Unit costs at this level are: $0.25 Direct materials Direct labor 0.40 0.15
Alpha Company has a current production level of 20,000 units per month Unit costs at this level are: $0.25 Direct materials Direct labor 0.40 0.15 Variable overhead Fixed overhead 0.20 0.20 Marketing - fixed Marketing/distribution - variable 0.40 Current monthly sales are 18,000 units Alpha has received a special order to sell 1,000 units at $1.25 each Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Alpha's Company's change in operating profits if the special order is accepted? Select one O a $50 increase in operating profits Ob $450 increase in operating profits c. $1,800 increase in operating profits Od $450 decrease in operating profits If the net present value for a project is negative, which of the following is true? Select one O A its internal rate of return is more than its discount rate OB its expected rate of return is below the required rate of return OC no enough information to answer OD the project should be accepted because its expected rate of return is greater than the discount rate
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