Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1. (special order) You sell high-quality fake IDs to college students at a regular price of $50. Your financial results for 20x9 are summarized

image text in transcribed
Question 1. (special order) You sell high-quality fake IDs to college students at a regular price of $50. Your financial results for 20x9 are summarized in the following contribution margin statement: 20x9 Sales volume (unit) Revenue 54.500 Variable costs $2,250 Contribution margin 32.250 Fixed costs $1.450 Profit 5800 Special order: You have been approached by a client who wants to buy 10 units at a discounted price of $30 per unit. You have enough spare capacity to fulfill this special order without cutting back on your regular business (90 units $50). Required 1. Compute total profit with the special order (total for the regular business plus the special order). To do that, compute total revenue, costs, etc with special order: Total revenues Total VOS Total CMS Total FC Protts 2. Make a decision based on total profits with and without the special order. Should you take this special order? (anter if yes no)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing Uncover Fraud And Protect Your Portfolio

Authors: Kate Mooney

1st Edition

0071481826, 9780071481823

More Books

Students also viewed these Accounting questions

Question

Examine data collection in research using the questions provided.

Answered: 1 week ago

Question

Understand the purpose and methods of cross-cultural training

Answered: 1 week ago