Lta company produces a single product. the cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per year is: direct materials $ 5.10 direct labor $ 3.80 variable manufacturing overhead $ 1.00 fixed manufacturing overhead $ 4.20 variable selling and administrative expense $ 1.50 fixed selling and administrative expense $ 2.40 the normal selling price is $21 per unit. the company's capacity is 75,000 units per year. an order has been received from a mail-order house for 15,000 units at a special price of $14.00 per unit. this order would not affect regular sales. required: 1. if the order is accepted, by how much will annual profits be increased or decreased? (the order will not change the company's total fixed costs.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Lta company produces a single product. the cost of producing and selling a single unit of this product at the company's normal activity ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A registered representative at another member firm has a client who wishes to buy a Direct Participation Program (DPP) unit, a product that is not offered through his firm.
Answers (1)
An organization that wishes to improve employee involvement, efficiency, and customer satisfaction might conduct that assesses how inputs coordinate to complete work and achieve the organizational outputs.
Answers (1)
Why is it important to have an honest relationship with bankers about business activities?
Answers (1)
HG Livery Supply had a beginning accounts payable balance of $57,300 and an ending accounts payable balance of $55,100. Sales for the period were $610,000 and costs of goods sold were $458,000. What is the payables turnover rate
Answers (1)
A company is just getting started and needs new equipment, but does not have a large amount of cash. Since the company business will also require frequent updating of the equipment, it is better to
Answers (1)
New Questions in Business
Other things held constant, the more debt a firm uses, the lower its profit margin will be. a. true b. false
Answers (1)
At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $840,000, and direct materials costs, $400,000.
Answers (1)
What is one difference between fixed-rate mortgages and variable-rate mortgages? A. The borrower can adjust monthly payment depending on his budget. B. The interest rate may change depending on the condition of the economy. C.
Answers (1)
Which of the following will be accomplished by efficient allocations of the factors of production? guaranteeing economic success understanding whether a product will fail fulfilling many needs and wants of society replenishment of limited resources
Answers (1)
A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant's estimate of total costs to be higher or lower than an economist's estimate? Explain.
Answers (1)