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there are 2 questions there Peach has received a special order for 18,000 units of its product. The product normally sells for $22 and has
there are 2 questions there
Peach has received a special order for 18,000 units of its product. The product normally sells for $22 and has the following manufacturing costs: Per unit Direct materials $5 Direct labor 4 Variable manufacturing overhead 4 Fixed manufacturing overhead 6 Unit cost $19 Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $18,000 incremental profit? Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $18,000 incremental profit? Multiple Choice $19 $14 $22 $15 Cotton Corp. currently makes 10,800 subcomponents a year in one of its factories. The unit costs to produce are: Per unit $22.00 Direct materials Direct labor 21.00 Variable manufacturing overhead 17.00 Fixed manufacturing overhead 9.00 Total unit cost $69.00 An outside supplier has offered to provide Cotton Corp, with the 10,800 subcomponents at an $76.00 per unit price. Fixed overhead is not avoidable. If Cotton Corp, accepts the outside offer, what will be the effect on short-term profits? Corp. accepts the outside offer, what will be the effect on short-term profits? Multiple Choice $97,200 increase $172,800 decrease no change $64,800 increase Step by Step Solution
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