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Exercise 14-33 Drop Product Line (LO 14-4, 14-5) Day Street Dell's owner is disturbed by the poor profit performance of his ice cream counter. He
Exercise 14-33 Drop Product Line (LO 14-4, 14-5) Day Street Dell's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analysis for the year just ended. Required: Correct the owner's profit analysis for the year just ended. Required Information Exerclse 14-36 Speclal Order (LO 14-4, 14-5) [The following Information applies to the questions displayed below.] Intercontinental Chemical Company, located In Buenos Alres, Argentina, recently recelved an order for a product It does not normally produce. Since the company has excess production capacity, management Is considering accepting the order. In analyzing the decision, the assistant controller is compiling the relevant costs of producing the order. Production of the speclal order would require 9,900 kllograms of theolite. Intercontinental does not use theolite for Its regular product, but the firm has 9,900 kllograms of the chemlcal on hand from the days when It used theolite regularly. The theolite could be sold to a chemical wholesaler for 14,500p. The book value of the theolite Is 3.60p per kilogram. Intercontinental could buy theolite for 4.00p per kilogram. ( p denotes the peso, Argentina's national monetary unit. Many countrles use the peso as thelr unit of currency. On the day this exercise was written, Argentina's peso was worth 0.104 U.S. dollar.) Exercise 14-36 Part 1 Required: 1-a. What Is the relevant cost of theolite for the purpose of analyzing the special-order decision? 1-b. The relevant cost of theolite for the purpose of analyzing the special-order decision is an example of: Complete this question by entering your answers in the tabs below. What is the relevant cost of theolite for the purpose of analyzing the special-order decision? (Enter your answer in pesos.)
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