Question
The following per unit information relates to a product produced by Creamer Company: Direct materials 30, Direct labour 15, Variable overhead 30, Fixed overhead 18.
The following per unit information relates to a product produced by Creamer Company: Direct materials 30, Direct labour 15, Variable overhead 30, Fixed overhead 18. Fixed selling costs are 500,000 per year, and variable selling costs are 12 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for 120 each. A customer has offered to buy 60,000 units for 90 each. The profit/loss associated with the special order is Select one: a. 180,000 b. 200,000 c. 160,000 d. 210,000 e. 190,000
its been long since I posted. Kindly help.
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