Question
Product C has variable costs of $32 and allocated fixed costs of $10 per unit. A potential buyer has offered to buy 10,000 units of
Product C has variable costs of $32 and allocated fixed costs of $10 per unit. A potential buyer has offered to buy 10,000 units of product C for $37 each. If the company has no excess capacity it would be profitable to accept the order.
TRUE OR FALSE
(Regarding question above) If the company has already met the budgeted sales level, has excess capacity and other customers will not be affected, it would be profitable to accept the order.
TRUE OR FALSE
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
