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: NUBD, Inc. manufactures and sells headphones. NUBD has the capacity tomanufacture and sell 20,000 headphones each year but is currently onlymanufacturing and selling 15,000. The following costs relate to annual operations at20,000 watches:Variable manufacturing cost,Fixed manufacturing cost.Variable selling and administrative cost,Fixed selling and administrative cost.Total CostP170,000P120,000P90,000P180,000

Here in this question, we are required to calculate cost above which company earns profit if accept…

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:

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:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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