8-1. The XYZ company has two plants producing “K Specials". It has the following expected data for the next month's operations. Variable (incremental) costs vary linearly from zero production to maximum capacity production. plant A plant B Max. Capacity, units Total fixed cost 1,000 800 750,000 480,000 Variable (incremental) Costs Max. Сараcity 900,000 800,000 a. performance has not been good, so the company expects to receive domestic orders for only 1,200 units next month at a rice of 1,400 per unit. How should the production be distributed between the plants for optimum economic oration? b. If the friendly foreign power offers to buy 350 additional units at 1,100 per unit, should the company accept the offer? Show the increment gain or loss.

8-1. The XYZ company has two plants producing “K Specials". It has the following expected data for the next month's operations. Variable (incremental) costs vary linearly from zero production to maximum capacity production. plant A plant B Max. Capacity, units Total fixed cost 1,000 800 750,000 480,000 Variable (incremental) Costs Max. Сараcity 900,000 800,000 a. performance has not been good, so the company expects to receive domestic orders for only 1,200 units next month at a rice of 1,400 per unit. How should the production be distributed between the plants for optimum economic oration? b. If the friendly foreign power offers to buy 350 additional units at 1,100 per unit, should the company accept the offer? Show the increment gain or loss.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

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