Rebel Base Company mines and manufactures Kyber crystals designed for use in light sabers. The company markets the crystals under its own label. Rebel Base has the capacity to mine and produce 39,000 units a year but is currently mining, producing, and selling only 16,000 units a year. The crystal's normal selling price is $1,640 per unit with no volume discounts. The unit-level costs of the crytsal's mining and production are $470 for direct materials, $150 for direct labor, and $160 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Rebel Base during the year are expected to be $2,120,000 and $805,000, respectively. Assume that Rebel Base receives a special order to mine, produce, and sell 3,020 crystals at $1,210 each.

Rebel Base Company mines and manufactures Kyber crystals designed for use in light sabers. The company markets the crystals under its own label. Rebel Base has the capacity to mine and produce 39,000 units a year but is currently mining, producing, and selling only 16,000 units a year. The crystal's normal selling price is $1,640 per unit with no volume discounts. The unit-level costs of the crytsal's mining and production are $470 for direct materials, $150 for direct labor, and $160 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Rebel Base during the year are expected to be $2,120,000 and $805,000, respectively. Assume that Rebel Base receives a special order to mine, produce, and sell 3,020 crystals at $1,210 each.

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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