What should the unit price be? General accounting Cara Industries incurred the following costs for 50,000 units:Variable costs: $90,000Fixed costs: 120,000Cara has received a special order from a foreign company for 5,000 units.There is sufficient capacity to fill the order without jeopardizing regularsales. Filling the order will require spending an additional $4,250 forshipping.If Cara wants to earn $4,000 on the order, what should the unit price be?a) $1.65b) $5.85c) $3.45d) $2.60

Step 1: Define Variable CostsVariable costs are usually considered as relevant costs. These costs…

Answered: Cara Industries incurred the following…

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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Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
what should the unit price be?
anw
Cara Industries incurred the following costs for 50,000 units: Variable costs: $90,000 Fixed costs: 120,000 Cara has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4,250 for shipping. If Cara wants to earn $4,000 on the order, what should the unit price be? a) $1.65 b) $5.85 c) $3.45 d) $2.60
What should the unit price is?
There is sufficient capacity to fill the order
Marigold Corp. incurred the following costs for 52000 units: Variable costs $312000 Fixed costs 392000 Marigold has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2400 for shipping. If Marigold wants to earn $4000 on the order, what should the unit price be? O $8.00 O $10.74 O $9.20 O $16.74
Concord Corporation incurred the following costs for 66000 units: Variable costs $396000 Fixed costs 392000 Concord has received a special order from a foreign company for 3500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4900 for shipping.If Concord wants to break even on the order, what should the unit sales price be? $11.94 $7.40 $6.00 $13.34
Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs $392,000 Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Martin wants to earn $6,000 on the order, what should the unit price be? Group of answer choices $9.70 $15.70 $8.00 $10.10
Required:(a) GEM has an opportunity to sell 10 000 units to an overseas customer. Import duties and other special costs associated with this order would total $42 000. The only selling costs that would be associated with the order would be a shipping cost of $9.00 per unit. What would be the minimum acceptable unit price for GEM to consider this order? (hint: GEM would not accept the order if it would reduce the company’s profit) (b) The company has 200 units of Flicks on hand that were produced two months ago. Due to blemishes on the units, it will be impossible to sell these units at the normal price. If the company wishes to sell them through regular sales channels, what would be the relevant cost for setting the minimum price? Explain. (c) “All future costs are relevant in decision making.” Do you agree? Explain.
Crane Company uses 9000 units of Part A in producing its products. A supplier offers to make Part A for $5. CraneCompany has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the relevant cost of buying Part A from the supplier is $72000. $45000. $27000. $0.
Nikul

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