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A company is wanting to run a Cap Promotion. Below is the following inform. Cost Object Cost per caps Costs of advertising Cost of labor Cost per unit $2.25 $125.00 $9.50 Cost Driver 4,250 caps 35 advertisements 100 hours a. What is the Total Cost of the Cap Promotion? b. The company will make $15,000 in revenue from the cap promotion. Explain why they should continue the cap promotion or cancel it.

A company is wanting to run a Cap Promotion. Below is the following inform. Cost Object Cost per caps Costs of advertising Cost of labor Cost per unit $2.25 $125.00 $9.50 Cost Driver 4,250 caps 35 advertisements 100 hours a. What is the Total Cost of the Cap Promotion? b. The company will make $15,000 in revenue from the cap promotion. Explain why they should continue the cap promotion or cancel it.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company is wanting to run a Cap Promotion. Below is the following information: Cost Object Cost per caps Costs of advertising Cost of labor Cost per unit $2.25 $125.00 $9.50 Cost Driver 4,250 caps 35 advertisements 100 hours a. What is the Total Cost of the Cap Promotion? b. The company will make $15,000 in revenue from the cap promotion. Explain why they should continue the cap promotion or cancel it.
Transcribed Image Text:A company is wanting to run a Cap Promotion. Below is the following information: Cost Object Cost per caps Costs of advertising Cost of labor Cost per unit $2.25 $125.00 $9.50 Cost Driver 4,250 caps 35 advertisements 100 hours a. What is the Total Cost of the Cap Promotion? b. The company will make $15,000 in revenue from the cap promotion. Explain why they should continue the cap promotion or cancel it.
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