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Bonita Industries incurred the following costs for 80000 units: Variable costs $480000 Fixed costs 392000 Bonita has received a special order from a foreign company
Bonita Industries incurred the following costs for 80000 units: Variable costs $480000 Fixed costs 392000 Bonita has received a special order from a foreign company for 2500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4000 for shipping. If Bonita wants to earn $5000 on the order, what should the unit price be? O $9.60 O $8.00 $14.50 $8.50 The master budget of Sheridan Company shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity. the following manufacturing overhead costs are expected: $720000 180000 150000 Indirect labor Machine supplies Indirect materials Depreciation on factory building Total manufacturing overhead 90000 $1140000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of $1368000 O $1140000 O $1350000. O $1278000 In computing the amount you need to invest in order to receive $2,000 at the end of two years, the present value computation assumes your investment will be made O at the beginning of the first year. O at the end of both years one and two O sometime during the first year, O at the end of the first year
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