Falcon Co. produces a single producd. Its normal selling price is $29 perunit. The variable costs are $16 per unit. Fixed costs are $20,400 for a normal production run of 5,000 units per morith. Faloon received a request fora spedal order that would not interfere with normal sales. The order was for 1,670 units with a special price of $21 perunit. Falcon has the camacity to handle the soedial order, and for this ordes, a variable selling cost of $2 per unit would be eliminated. If the order is accopted, what would the the impact on profit? a. increase of 15197 b. increase of 9352 c. increase of 11690 d. decrease of 7014
Falcon Co. produces a single producd. Its normal selling price is $29 perunit. The variable costs are $16 per unit. Fixed costs are $20,400 for a normal production run of 5,000 units per morith. Faloon received a request fora spedal order that would not interfere with normal sales. The order was for 1,670 units with a special price of $21 perunit. Falcon has the camacity to handle the soedial order, and for this ordes, a variable selling cost of $2 per unit would be eliminated. If the order is accopted, what would the the impact on profit? a. increase of 15197 b. increase of 9352 c. increase of 11690 d. decrease of 7014
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Falcon Co. produces a single producd. Its normal selling price is $29 perunit. The variable costs are $16 per unit. Fixed costs are $20,400 for a normal production run of 5,000 units per morith. Faloon received a request fora spedal order that would not interfere with normal sales. The order was for 1,670 units with a special price of $21 perunit. Falcon has the camacity to handle the soedial order, and for this ordes, a variable selling cost of $2 per unit would be eliminated. If the order is accopted, what would the the impact on profit?
a. increase of 15197
b. increase of 9352
c. increase of 11690
d. decrease of 7014
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