Subject - account Please help me. Thankyou. Jackson Company produces a single product and has capacity to produce 175,000 units per month. Costs to produce its currentmonthly sales of 140,000 units follow. The normal selling price of the product is $150 per unit. A new customer offers to purchase35,000 units for $66.60 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixedgeneral and administrative costs. The special offer would not affect its normal sales.Per Unit Costs at 140,000 Units$12.50$1,750,00015.00a.Fixed general and administrative 15.00Totals$74.00b.Direct materialsDirect laborVariable overheadFixed overheadC.14.00d.17.502,100,000How much is the contribution margin and should Jackson Company accept the special order?The contribution margin is $475,000 and they should accept the special order1,960,0002,450,0002,100,000$10,360,000The contribution margin is $878,500 and they should accept the special orderThe contribution margin is negative $175,000 and they should reject the special orderThe contribution margin is negative $241,375 and they should reject the special order

The contribution margin is a valuable and important tool for companies in making pricing, cost…

Jackson Company produces a single product and has capacity to produce 175,000 units per month. Costs to produce its current monthly sales of 140,000 units follow. The normal selling price of the product is $150 per unit. A new customer offers to purchase 35,000 units for $66.60 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixed general and administrative costs. The special offer would not affect its normal sales. Per Unit Costs at 140,000 Units $12.50 $1,750,000 15.00 2,100,000 Direct materials Direct labor Variable overhead Fixed overhead 1,960,000 17.50 2,450,000 2,100,000 $10,360,000 14.00 Fixed general and administrative 15.00 Totals $74.00 How much is the contribution margin and should Jackson Company accept the special order? a. The contribution margin is $475,000 and they should accept the special order b. The contribution margin is $878,500 and they should accept the special order C. The contribution margin is negative $175,000 and they should reject the special order

Jackson Company produces a single product and has capacity to produce 175,000 units per month. Costs to produce its current monthly sales of 140,000 units follow. The normal selling price of the product is $150 per unit. A new customer offers to purchase 35,000 units for $66.60 per unit. If the special offer is accepted, there will be no additional fixed overhead and no additional fixed general and administrative costs. The special offer would not affect its normal sales. Per Unit Costs at 140,000 Units $12.50 $1,750,000 15.00 2,100,000 Direct materials Direct labor Variable overhead Fixed overhead 1,960,000 17.50 2,450,000 2,100,000 $10,360,000 14.00 Fixed general and administrative 15.00 Totals $74.00 How much is the contribution margin and should Jackson Company accept the special order? a. The contribution margin is $475,000 and they should accept the special order b. The contribution margin is $878,500 and they should accept the special order C. The contribution margin is negative $175,000 and they should reject the special order

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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