Question
Walnut has received a special order for 10,000 units of its product. The product normally sells for $25 and has the following manufacturing costs: Per
Walnut has received a special order for 10,000 units of its product. The product normally sells for $25 and has the following manufacturing costs:
| Per unit | |
| Direct materials | $5 |
| Direct labour | 3 |
| Variable manufacturing overhead | 2 |
| Fixed manufacturing overhead | 6 |
| Unit cost | $16 |
Assume that Walnut has sufficient capacity to fill the order. What price should Walnut charge to make a $15,000 incremental profit?
| A. | $25 | |
| B. | $16 | |
| C. | $9 | |
| D. | $15 |
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Auditing Theory And Practice
Authors: C. William Thomas
1st Edition
0534013880, 978-0534013882
