Question
Sales (in units) 60,000 Selling price per unit 25 Manufacturing costs per unit: Materials 5 Direct labor 4 Overhead Variable 4 Fixed 6 Total 19
| Sales (in units) | 60,000 |
| Selling price per unit | 25 |
| Manufacturing costs per unit: |
|
| Materials | 5 |
| Direct labor | 4 |
| Overhead |
|
| Variable | 4 |
| Fixed | 6 |
| Total | 19 |
| Gross margin | 6 |
| Selling and admin. Expenses per unit | 2 |
| Operating income | 4 |
|
|
|
| A company in a foreign market offer to buy and the offer specifies the following data | |
| units to be sold | 10,000 |
| price per unit | 13 |
| Should the company sell this special order? | |
| a. | Yes, accept | |
| b. | No, reject | |
| c. | Indifferent to reject or not | |
| d. | Always reject |
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
5th Edition
0273622919, 978-0273622918
