Kyrie Inc. can make 10,000 banners per month. Kyrie can sell 9,000 banners per month to NBA fans for ₱10 per banner. The company’s costs per banner based on making 10,000 banners are: Prime cost ₱ 5.00 Overhead cost    ₱ 3.00  overhead is 2/3 fixed at that volume WBA offers to buy 1,000 banners with special WBA insignias for ₱7 per banner. Printing the special insignias will cost Kyrie ₱200. What is the incremental profit/(loss) associated with this special order? Show solution Group of answer choices ₱ 1,000 ₱ (1,000) ₱ 800 ₱  (800)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kyrie Inc. can make 10,000 banners per month. Kyrie can sell 9,000 banners per month to NBA fans for ₱10 per banner. The company’s costs per banner based on making 10,000 banners are:

Prime cost

₱ 5.00

Overhead cost   

₱ 3.00  overhead is 2/3 fixed at that volume

WBA offers to buy 1,000 banners with special WBA insignias for ₱7 per banner. Printing the special insignias will cost Kyrie ₱200.

What is the incremental profit/(loss) associated with this special order? Show solution

Group of answer choices

₱ 1,000

₱ (1,000)

₱ 800

₱  (800)

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