Apex Manufacturing has received a special one-time order for widgets at $8 per unit. Apex currently produces and sells 10,000 widgets at $10 each, operating at 80% of its production capacity. The production costs for widgets are $7 per unit, which includes $4 in variable costs and $3 in fixed costs. To produce the special order, Apex needs to purchase additional equipment costing $2,400 with no salvage value. Management expects no other changes in costs for the additional production. If Apex wishes to earn a profit of $1,800 on the special order, how many units would need to be produced? A) 1,050 units B) 2,100 units C) 3,600 units D) 4,200 units

Apex Manufacturing has received a special one-time order for widgets at $8 per unit. Apex currently produces and sells 10,000 widgets at $10 each, operating at 80% of its production capacity. The production costs for widgets are $7 per unit, which includes $4 in variable costs and $3 in fixed costs. To produce the special order, Apex needs to purchase additional equipment costing $2,400 with no salvage value. Management expects no other changes in costs for the additional production. If Apex wishes to earn a profit of $1,800 on the special order, how many units would need to be produced? A) 1,050 units B) 2,100 units C) 3,600 units D) 4,200 units

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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