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 company's
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 company's costs per banner based on making 10,000 banners are: Prime cost Overhead cost P 5.00 P 3.00 overhead is 2/3 fixed at that volume WBA offers to buy 1,000 banners with special WBA insignias for P7 per banner. Printing the special insignias will cost Kyrie $200. What is the incremental cost associated with this special order?
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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