Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one - time - only special order for a product similar to one

image text in transcribedimage text in transcribed

Crandle Manufacturers Inc. is approached by a potential 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 costs: Direct materials $160 80 155 95 Direct labor Manufacturing support Marketing costs Fixed costs: Manufacturing support Marketing costs Total costs 155 65 710 Total costs 710 355 Markup (50%) Targeted selling price $1,065 What is the change in operating profits if the one-time-only special order for 1,070 units is accepted for $560 a unit by Crandle? O A. $74,190 increase in operating profits B. $74,900 decrease in operating profits C. $74,190 decrease in operating profits D. $74,900 increase 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

Finance The Basics

Authors: Erik Banks

3rd Edition

1138919780, 9781138919785

More Books

Students also viewed these Accounting questions

Question

When is warranty cost reported on the statement of cash flows?

Answered: 1 week ago