Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I would like to know what happens to the 10,000 out of the 20,000 units sold to the new customer. Every answer here does not

image text in transcribed I would like to know what happens to the 10,000 out of the 20,000 units sold to the new customer. Every answer here does not address the 10,000 units for the new customer that will be taken out of the outsides sales. Please provide detailed steps for you answers. Answers that provide no explanation will be negatively rated.

9 Salisbury Corporation has been producing and selling 30.000 caps a year. The company has the capacity to produce 0,000 caps with its present facilities. The following information is also available Selling price per unit: Variable costs per unit 3$35 D we Manufacturing Selling and Administrative -b.no CM $6 Fixed costs in total: Manufacturing Selling and Administrative $128,000 $56,000 Gilbert Company has contacted Salisbury about purchasing 12,000 units at $24 each. A new customer who wants 20,000 units (all or nothing) right now also contacted Salisbury. Salisbury has to reduce its existing sales when selling either to Gilbert or to the new customer. For the new customer, variable selng and administrative costs would not be incurred, Unfortunately, Salisbury cannot sell both to Gilbert Com Salisburys-minimum price to accept the offer from the new customer (instead the new customer. What is Gilbe y)

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

Anti Audit Warfare

Authors: Business Management Daily

7th Edition

1540747182, 978-1540747181

More Books

Students also viewed these Accounting questions

Question

Solve Problem -2x + 8 Answered: 1 week ago

Answered: 1 week ago