NUBD normally sells its headphones for P40 each. A discount chain is interesting in purchasing NUBD's excess capacity of 5,000 watches. This special order would not affect regular sales or the cost structure above. NUBD's profits for the year will increase as long as the price on this special order exceeds: * O Do not use money sign. Sample format: 11 or (11) NUBD, Inc. manufactures and sells headphones. NUBD has the capacity to manufacture and sell 20,000 headphones each year but is currently only manufacturing and selling 15,000. The following costs relate to annual operations at 20,000 watches: Variable manufacturing cost. Fixed manufacturing cost. Variable selling and administrative cost, Fixed selling and administrative cost Total Cost P170,000 P120,000 P90,000 P180,000
NUBD normally sells its headphones for P40 each. A discount chain is interesting in purchasing NUBD's excess capacity of 5,000 watches. This special order would not affect regular sales or the cost structure above. NUBD's profits for the year will increase as long as the price on this special order exceeds: * O Do not use money sign. Sample format: 11 or (11) NUBD, Inc. manufactures and sells headphones. NUBD has the capacity to manufacture and sell 20,000 headphones each year but is currently only manufacturing and selling 15,000. The following costs relate to annual operations at 20,000 watches: Variable manufacturing cost. Fixed manufacturing cost. Variable selling and administrative cost, Fixed selling and administrative cost Total Cost P170,000 P120,000 P90,000 P180,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:NUBD normally sells its headphones for P40 each. A discount chain is interesting in purchasing
NUBD's excess capacity of 5,000 watches. This special order would not affect regular sales or
the cost structure above. NUBD's profits for the year will increase as long as the price on this
special order exceeds: * O
Do not use money sign. Sample format: 11 or (11)
NUBD, Inc. manufactures and sells headphones. NUBD has the capacity to
manufacture and sell 20,000 headphones each year but is currently only
manufacturing and selling 15,000. The following costs relate to annual operations at
20,000 watches:
Variable manufacturing cost,
Fixed manufacturing cost.
Variable selling and administrative cost
Total Cost
P170,000
P120,000
P90,000
Fixed selling and administrative cost P180,000
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