Question
Kyrie Inc. can make 10,000 banners per month. Kyrie can sell 9,000 banners per month to NBA fans for 10 per banner. The companys costs
Kyrie Inc. can make 10,000 banners per month. Kyrie can sell 9,000 banners per month to NBA fans for 10 per banner. The companys costs per banner based on making 10,000 banners are:
| Prime cost | 5.00 |
| Overhead cost | 3.00 overhead is 2/3 fixed at that volume |
WBA offers to buy 1,000 banners with special WBA insignias for 7 per banner. Printing the special insignias will cost Kyrie 200.
What is the incremental profit/(loss) associated with this special order?
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
19th edition
1133957919, 978-1285632988, 1285632982, 978-0357691229, 978-1133957911
