Question
You have the capacity to sell 10000 umbrellas. You currently make 8000 for $35 a piece. The cost to make one follows: DM: $8 Direct
You have the capacity to sell 10000 umbrellas. You currently make 8000 for $35 a piece.
The cost to make one follows:
DM: $8
Direct Labor:$8
Variable overhead: 5
fixed oh: 10
Assuming 8000 were made total per umbrella is $31
If you were offered to buy 1000 umbrellas for $20 a piece should you do it, how much would you make?
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
7th Edition
0912503688, 978-0912503684
