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Hello, I need help to solve one of my accounting home work (attached), please provide the answer in excel spread sheet to show step by
Hello,
I need help to solve one of my accounting home work (attached), please provide the answer in excel spread sheet to show step by step calculation.
Thanks.
Week 6 Homework Assignment Rocket Life manufactures small toy rockets. At their normal level of activity of 50,000 units, the cost of producing a single rocket is: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling & Admin Expenses Fixed Selling & Admin Expenses $ $ $ $ $ $ 4.00 2.00 1.00 3.00 2.00 3.00 The company sells each rocket for $20 per unit. The company has capacity to produce 60,000 rockets per year, even though they produce only 50,000. A special order has been received for 5,000 rockets at a special price of $10 per unit. If the order is accepted, by how much will the annual profits be increased or decreased? Please note that the order will not affect the company's fixed costs in any way. Please show your work for full credit. Per unit Revenue Incremental costs: Direct material Direct labor Variable Manufacturing Overhead Variable Selling & Admin Expenses $ $ $ $ $ 5000 units 10.00 $ 50,000.00 4.00 2.00 1.00 2.00 $ $ $ $ 20,000.00 10,000.00 5,000.00 10,000.00Step by Step Solution
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