REQUIRED: 1. Determine whether the company should accept the special order. Use two solutions like Exercise 8-10. 2. Assuming the company wants to maximize profits, if the customer wants the special order to be 20,000 units, should the company reject the special order? Use two solutions also like no. 1.
REQUIRED: 1. Determine whether the company should accept the special order. Use two solutions like Exercise 8-10. 2. Assuming the company wants to maximize profits, if the customer wants the special order to be 20,000 units, should the company reject the special order? Use two solutions also like no. 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please help me, thank you
![The R Company has annual production of 60,000 units a year. Budgeted
operating results for 2020 are as follows:
Sales (50,000 units @ P10)
Variable costs & expenses:
Manufacturing (50,000 units @P3.20)
Selling (50,000 @P0.80)
Contribution margin
Fixed costs & expenses:
Manufacturing
Selling
P500,000
P160,000
40,000
200,000
P300,000
P100,000
80,000
180,000
P120,000
Net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd5f94483-f7ef-4324-8c89-052b3fd90920%2Fe97a5328-6b92-42e5-a206-da3e75eab552%2Frta3lf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The R Company has annual production of 60,000 units a year. Budgeted
operating results for 2020 are as follows:
Sales (50,000 units @ P10)
Variable costs & expenses:
Manufacturing (50,000 units @P3.20)
Selling (50,000 @P0.80)
Contribution margin
Fixed costs & expenses:
Manufacturing
Selling
P500,000
P160,000
40,000
200,000
P300,000
P100,000
80,000
180,000
P120,000
Net income
![A
wholesaler from another part of the country wants to buy 5,000
units at a price of P8 per unit. All fixed cost would remain within the relevant range.
Variable manufacturing costs would be the same per unit but the variable selling
expenses would increase by P2 per unit on the special order only.
REQUIRED:
1. Determine whether the company should accept the special order. Use two
solutions like Exercise 8-10.
2. Assuming the company wants to maximize profits, if the customer wants the
special order to be 20,000 units, should the company reject the special order? Use
two solutions also like no. 1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd5f94483-f7ef-4324-8c89-052b3fd90920%2Fe97a5328-6b92-42e5-a206-da3e75eab552%2Fscdob7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A
wholesaler from another part of the country wants to buy 5,000
units at a price of P8 per unit. All fixed cost would remain within the relevant range.
Variable manufacturing costs would be the same per unit but the variable selling
expenses would increase by P2 per unit on the special order only.
REQUIRED:
1. Determine whether the company should accept the special order. Use two
solutions like Exercise 8-10.
2. Assuming the company wants to maximize profits, if the customer wants the
special order to be 20,000 units, should the company reject the special order? Use
two solutions also like no. 1.
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