Question
Dog Company sells unfinished ceramic cats at a price of $32.00. The current profit margin is $12.00 per cat. The company is considering taking individual
Dog Company sells unfinished ceramic cats at a price of $32.00. The current profit margin is $12.00 per cat. The company is considering taking individual orders and customizing them for customers. To finish the cat, the company would have to pay additional labor of $7.00 per unit, additional materials costing an average of $9.00 per unit, and fixed costs would increase by $4,000. If the company estimates that it can sell 1500 units for $60.00 per unit each month,
REQUIRED: Determine if the company should start taking the orders?
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Core concepts of accounting information systems
Authors: Jacob M. Rose, Mark G. Simkin, Carolyn Strand Norman
13th edition
978-1-119-0332, 1118742931, 978-1118742938
