For Items 7-8 Alex Company is a manufacturer of electronic switches. One of their products, "Sensory Switch," is used as a component of most electrical appliances. Sensory switch has the following financial data Selling Price Variable Costs: Materials Labor per unit: Factory Overhead Shipping and Handling 2418 15' 180 60 Fixed Costs: Factory Overhead 36 Selling and Administrative 14 50 Total 110 Page 3 of 4 During the month, Alex has received a special, one-time order for 1,500 units of Sensory Switch. 7. Assuming that the company has excess capacity that is enough to produce this special order without affecting sales to regular customers, and the company wants to improve its profitability, the price that is acceptable for this special, one-time order is in excess of a. P180. b. P110. c. P60. d. P50. CORY 8. Assuming that Alex is operating at full capacity and that it does not want to incur a loss from this order, the minimum acceptable price is a. P180. b. P110. C. P60. d. P50.
For Items 7-8 Alex Company is a manufacturer of electronic switches. One of their products, "Sensory Switch," is used as a component of most electrical appliances. Sensory switch has the following financial data Selling Price Variable Costs: Materials Labor per unit: Factory Overhead Shipping and Handling 2418 15' 180 60 Fixed Costs: Factory Overhead 36 Selling and Administrative 14 50 Total 110 Page 3 of 4 During the month, Alex has received a special, one-time order for 1,500 units of Sensory Switch. 7. Assuming that the company has excess capacity that is enough to produce this special order without affecting sales to regular customers, and the company wants to improve its profitability, the price that is acceptable for this special, one-time order is in excess of a. P180. b. P110. c. P60. d. P50. CORY 8. Assuming that Alex is operating at full capacity and that it does not want to incur a loss from this order, the minimum acceptable price is a. P180. b. P110. C. P60. d. P50.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer with complete solution
Transcribed Image Text:For Items 7-8
Alex Company is a manufacturer of electronic switches. One of their products, "Sensory Switch," is used
as a component of most electrical appliances.
Sensory switch has the following financial data
Selling Price
Variable
Costs:
Materials
Labor
per
unit:
Factory Overhead
Shipping and Handling
2418 15'
180
60
Fixed Costs:
Factory Overhead
36
Selling
and
Administrative
14
50
Total
110
Page 3 of 4
During the month, Alex has received a special, one-time order for 1,500 units of Sensory Switch.
7. Assuming that the company has excess capacity that is enough to produce this special order
without affecting sales to regular customers, and the company wants to improve its profitability,
the price that is acceptable for this special, one-time order is in excess of
a. P180.
b. P110.
c. P60.
d. P50.
CORY
8. Assuming that Alex is operating at full capacity and that it does not want to incur a loss from this
order, the minimum acceptable price is
a. P180.
b. P110.
C. P60.
d. P50.
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