Multiple choice $75 $34 $80 $85

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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H1.

 

Finn flying company produces
and sells kits for $54. The
company had the capability to
produce 10,900 kits each period.
At capacity the costs assigned to
each unit are as follows.
Unit level $34
Product level $19
Facility costs $14
The cosmonauts has received a
special order for 245 kits.
Assuming that no sales to regular
customers will be lost if the order
is accepted, at what selling price
will the company be indifferent
betweeen accepting or rejecting
the special order?
Multiple choice
$75
$34
$80
$85
Transcribed Image Text:Finn flying company produces and sells kits for $54. The company had the capability to produce 10,900 kits each period. At capacity the costs assigned to each unit are as follows. Unit level $34 Product level $19 Facility costs $14 The cosmonauts has received a special order for 245 kits. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent betweeen accepting or rejecting the special order? Multiple choice $75 $34 $80 $85
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