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Question: Shakira Electronics has received a special one-time order for 900 light bulbs at $7 per unit. Shakira currently produces and sells 10,000 units at $8.00 each. This level represents 80% of its capacity. The production costs for these units are $6 per unit, which includes a $4 variable cost and a $2 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,200 with a zero-salvage value. Management expects no other changes in costs as a result of the additional production. If Shakira wishes to earn $1,500 on the special order, the size of the order would need to be?

Question: Shakira Electronics has received a special one-time order for 900 light bulbs at $7 per unit. Shakira currently produces and sells 10,000 units at $8.00 each. This level represents 80% of its capacity. The production costs for these units are $6 per unit, which includes a $4 variable cost and a $2 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,200 with a zero-salvage value. Management expects no other changes in costs as a result of the additional production. If Shakira wishes to earn $1,500 on the special order, the size of the order would need to be?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 3PB: Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in...
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The size of the order would need to be?

Question: Shakira Electronics has received a special one-time order for 900 light bulbs at $7 per unit. Shakira currently produces and sells 10,000 units at $8.00 each. This level represents 80% of its capacity. The production costs for these units are $6 per unit, which includes a $4 variable cost and a $2 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,200 with a zero-salvage value. Management expects no other changes in costs as a result of the additional production. If Shakira wishes to earn $1,500 on the special order, the size of the order would need to be?
Transcribed Image Text:Question: Shakira Electronics has received a special one-time order for 900 light bulbs at $7 per unit. Shakira currently produces and sells 10,000 units at $8.00 each. This level represents 80% of its capacity. The production costs for these units are $6 per unit, which includes a $4 variable cost and a $2 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,200 with a zero-salvage value. Management expects no other changes in costs as a result of the additional production. If Shakira wishes to earn $1,500 on the special order, the size of the order would need to be?
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