Question
Bee Co. made and sold 100,000 of its only product in year 1 for $15 each. Bee's costs per unit for year 1 follow: Direct
Bee Co. made and sold 100,000 of its only product in year 1 for
$15
each. Bee's costs per unit for year 1 follow:\ Direct\ materials\
$5.00
\ Direct labor
,2.00
\ Variable\ manufacturing 1.00\ overhead\ Fixed\ manufacturing 1.50\ overhead\ Variable\ selling &\ administrative\ 0.80\ costs\ Fixed selling &\ administrative
,0.50
\ costs\ Total
$$10.80
\ In year 2, Bee expects to produce and sell 80,000 units. The selling price and variable costs per unit will remain unchanged, as will total fixed costs. Early in year 2, a new customer approaches Bee and requests a one-time special order for 30,000 units.
Bee Co. made and sold 100,000 of its only product in year 1 for $15 each. Bee's costs per unit for year 1 remain unchanged, as will total fixed costs. Early in year 2, a new customer approaches Bee and requests a one-time special order for 30,000 units. Bee Co. made and sold 100,000 of its only product in year 1 for $15 each. Bee's costs per unit for year 1 remain unchanged, as will total fixed costs. Early in year 2, a new customer approaches Bee and requests a one-time special order for 30,000 units
Bee Co. made and sold 100,000 of its only product in year 1 for
$15
each. Bee's costs per unit for year 1 follow:\ Direct\ materials\
$5.00
\ Direct labor
,2.00
\ Variable\ manufacturing 1.00\ overhead\ Fixed\ manufacturing 1.50\ overhead\ Variable\ selling &\ administrative\ 0.80\ costs\ Fixed selling &\ administrative
,0.50
\ costs\ Total
$$10.80
\ In year 2, Bee expects to produce and sell 80,000 units. The selling price and variable costs per unit will remain unchanged, as will total fixed costs. Early in year 2, a new customer approaches Bee and requests a one-time special order for 30,000 units.
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