Stella Co. sells “BJS” at a unit price of P 36,000, with the following unit production costs: Direct materials P 12,000 Direct labor 8,000 Variable overhead 6,000 Fixed overhead 4,000 A special order for 1,000 units was received from Marie, a well-known BJS distributor based in Makati. Additional shipping costs for this sale are P4,000 per unit. REQUIREMENTS: What is the minimum selling price per unit for the special order if: 1. Stella is operating at FULL capacity? 2. Stella has EXCESS capacity?

Stella Co. sells “BJS” at a unit price of P 36,000, with the following unit production costs: Direct materials P 12,000 Direct labor 8,000 Variable overhead 6,000 Fixed overhead 4,000 A special order for 1,000 units was received from Marie, a well-known BJS distributor based in Makati. Additional shipping costs for this sale are P4,000 per unit. REQUIREMENTS: What is the minimum selling price per unit for the special order if: 1. Stella is operating at FULL capacity? 2. Stella has EXCESS capacity?

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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