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Concord Corporation produces corn chips. The cost of one batch is below: Direct materials Direct labor Variable overhead Fixed overhead $16 11 9 14 An
Concord Corporation produces corn chips. The cost of one batch is below: Direct materials Direct labor Variable overhead Fixed overhead $16 11 9 14 An outside supplier has offered to produce the corn chips for $24 per batch. How much will Concord Corporation save if it accepts the offer? $26 per batch $12 per batch $3 per batch $17 per batch Sheffield Corp. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Sheffield would sell it for $52. The cost to assemble the product is estimated at $15 per unit and the company believes the market would support a price of $64 on the assembled unit. What decision should Sheffield make? O Process further, the company will be better off by $13 per unit. Sell before assembly, the company will be better off by $3 per unit. O Process further, the company will be better off by $21 per unit. Sell before assembly, the company will be better off by $12 per unit. Nelson Manufacturing has the following data: Variable costs are 60% of the unit selling price. The contribution margin ratio is 40%. The unit contribution margin is $500. The fixed costs are $500,000. Which of the following does not express the break-even point? O $500,000 + 60X = X $500,000 =.40 = X $500,000 = $500 = X $500,000 + 40X = X
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