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)
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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 |
|
₱ 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
Group of answer choices
₱ 1,000
₱ (1,000)
₱ 800
₱ (800)
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