Speedy Mouse Inc . has received an offer to provide a one-time sale of 4 000 mice to a network of computer superstores . This sale would not affect other sales or their costs , but the variable cost of the additional units will increase by PO . 60 for shipping would and fixed costs by P18 , 000 . The selling should price for each unit in this order would be P20 . Based on quantitative measurement , should the company accept this offer ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Speedy Mouse Inc . has received an
offer to provide a one-time sale of 4
000 mice to a network of
computer superstores . This sale
would not affect other sales or their
costs , but the variable cost of the
additional units will increase by PO .
60 for shipping would and fixed
costs by P18 , 000 . The selling
should price for each unit in this
order would be P20 . Based on
quantitative measurement , should
the company accept this offer ?
10 of 20
Transcribed Image Text:4G+ 5:29 PM ě 0.7KB/s l 84 02:31:19 Remaining Speedy Mouse Inc . has received an offer to provide a one-time sale of 4 000 mice to a network of computer superstores . This sale would not affect other sales or their costs , but the variable cost of the additional units will increase by PO . 60 for shipping would and fixed costs by P18 , 000 . The selling should price for each unit in this order would be P20 . Based on quantitative measurement , should the company accept this offer ? 10 of 20
5:29 PM ë ě
4G+
4.7KB/s L al 84
210917889_1941065336049...
Speedy Mouse Inc, makes a special mouse for computers. Each mouse sells for P25 and annual production and sales
are 120,000 units. Costs for each mouse are as follows:
Direct material
P6.00
3.00
Direct labor
Variable overhead
Variable selling expenses
Total variable cost
0.80
2.20
P12.00
Total fixed overhead
P589,550
II
Transcribed Image Text:5:29 PM ë ě 4G+ 4.7KB/s L al 84 210917889_1941065336049... Speedy Mouse Inc, makes a special mouse for computers. Each mouse sells for P25 and annual production and sales are 120,000 units. Costs for each mouse are as follows: Direct material P6.00 3.00 Direct labor Variable overhead Variable selling expenses Total variable cost 0.80 2.20 P12.00 Total fixed overhead P589,550 II
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