Green Valley produces 4000 units of rubber sheets working at 80% capacity. It receives an order from a foreign dealer for 1,000 units at $50 per sheet although the local market price is $90 per sheet. The cost of the product is given below: $ Materials 10 per sheet Labour 20 per sheet Variable overheads 10 per sheet Fixed manufacturing cost 80,000 Required: i. Advise the management of Green Valley whether to accept the order or not.

Green Valley produces 4000 units of rubber sheets working at 80% capacity. It receives an order from a foreign dealer for 1,000 units at $50 per sheet although the local market price is $90 per sheet. The cost of the product is given below: $ Materials 10 per sheet Labour 20 per sheet Variable overheads 10 per sheet Fixed manufacturing cost 80,000 Required: i. Advise the management of Green Valley whether to accept the order or not.

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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