Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sample question with answer XYZ company has annual productive capacity of 75,000 units per year. Budgeted operating results for 2020 are as follows: Sales (70,000

image text in transcribed
Sample question with answer XYZ company has annual productive capacity of 75,000 units per year. Budgeted operating results for 2020 are as follows: Sales (70,000 units @ $ 15 Variable costs: Manufacturing (75,000 @ 3.80) Selling (70,000 @ $0.65) Fixed Cost Manufacturing Selling & administrative $120,000 $ 75,000 Show all your workings A wholesaler from another country wants to buy 4000 units at a price of $10 per unit. All fixed cost will remain within the relevant range. Variable manufacturing costs would be the same per unit, but variable selling cost would increase by $1.50 per unit for the special order only REQUIRED 1. Determine whether the company should produce the special order. 2. Assuming XYZ company's objective is to maximize profit, if the customer wants a special order of 10,000 units , should XYZ company accept or reject special order

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

Oil And Gas Industry IRS Audit Technique Guide

Authors: Internal Revenue Service

1st Edition

1304113434, 978-1304113436

More Books

Students also viewed these Accounting questions

Question

tion list i tion list

Answered: 1 week ago

Question

explain the need for human resource strategies in organisations

Answered: 1 week ago

Question

describe the stages involved in human resource planning

Answered: 1 week ago