Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers.

image text in transcribed
image text in transcribed
Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: $150 80 145 Direct materials Direct labor Manufacturing support Marketing coste Fructe Manufacturing support Marketing cost Total cost Map 14016) Targeted selling price What is the contribution margin per unit? 5260 480 5220 1650 135 89 650 260 391 Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable con Direct manale $130 Direct labor 80 Manufacturing support 135 Marketing costs Manufacturing support 155 Marketing costs 35 Total cost 680 Markup 300 Targeted celling price What is the change in operating profits if the one-time-only special order for 1000 units is accepted for $540 a unit by Coroid? $100,000 increase in operating profits $99,320 increase in operating profits 599,320 decrease in operating profits $100,000 decrease in operating profits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Sneak Peek Into The Auditing World A Day Of An Auditor

Authors: Anupma Aggarwal, Adv (Dr.) Raj Kumar S Adukia

1st Edition

1648997074, 978-1648997075

More Books

Students also viewed these Accounting questions

Question

Explain the relationship between consumption and savings.

Answered: 1 week ago