Hanover Binding plans to produce 40,000 books next year at a total cost of $1,840,000 with a selling price per book of $66.00. The fixed costs total $280,000. Management is considering lowering the price to $60.00 per book, and feels that this action will cause sales to climb to 46,000 books. What will be the incremental costs incurred if 46,000 books are sold? $340,000 $234,000 $(30,000) $360,000 $195,000
Hanover Binding plans to produce 40,000 books next year at a total cost of $1,840,000 with a selling price per book of $66.00. The fixed costs total $280,000. Management is considering lowering the price to $60.00 per book, and feels that this action will cause sales to climb to 46,000 books. What will be the incremental costs incurred if 46,000 books are sold? $340,000 $234,000 $(30,000) $360,000 $195,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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Hanover Binding plans to produce 40,000 books next year at a total cost of $1,840,000 with a selling price per book of $66.00. The fixed costs total $280,000. Management is considering lowering the price to $60.00 per book, and feels that this action will cause sales to climb to 46,000 books. What will be the incremental costs incurred if 46,000 books are sold?
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$340,000 |
||
|
$234,000 |
||
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$(30,000) |
||
|
$360,000 |
||
|
$195,000 |
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