Question
Jasmine, Inc. has received a special order for 500 oz. of perfume at $63.00 per oz. The buyer will provide their own perfume vials with
Jasmine, Inc. has received a special order for 500 oz. of perfume at $63.00 per oz. The buyer will provide their own perfume vials with labels, thereby saving the company $2 per oz in variable costs. The product normally sells of $82.50 per oz. and the company is currently selling 12,000 oz per month. The following information is available about Jasmine, Inc.
Normal sales revenue per oz | $82.50 |
---|---|
Variable expenses per oz | $57.75 |
Allocated fixed expenses per oz | $21.00 |
Assuming Jasmine has the capacity to accept the special order, the impact on profits is a Blank______.
Multiple choice questions.
$3,625 increase
$2,625 increase
$31,500 increase
$6,875 decrease
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