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II. A business, established to produce and sell golf balls all around the world. In the current period decided to produce 2.000.000 balls, but the
II. A business, established to produce and sell golf balls all around the world. In the current period decided to produce 2.000.000 balls, but the marketing manager reported to sell 1.200.000 balls for 2 $ each. The costs of the business consist of: Direct Material: 0,25 $/Ball Direct Labor: 0,22 $/Ball Variable Factory Overhead: 0,08 $/Ball Fixed Factory Overhead: 320.000 $ Year Variable Marketing Expenses 0,65 $/Ball Fixed Marketing and Administration Expense: 120,000 $ Year A Japan enterprise offered a proposal to buy 500.000 balls for 0,75 $ each. Discuss if the proposal is acceptable or not. Prepare the Full Costing and Variable Costing Income Statements of both situations
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