TB MC Qu. 4-78 (Algo) The Young Company has gathered the... The Young Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor Overhead (40% variable) Cost to manufacture Desired markup (50%) Target selling price $15 7 20 42 21 $63 The above cost information is based on 10,800 units. A distributor has offered to buy 3,300 units at a price of $44 per unit. The distributor claims this special order would not disturb regular sales at $63. Special packaging and other selling expenses would be an additional $0.50 per unit for the special order. How many units of regular sales could be lost before this contract is not profitable?

TB MC Qu. 4-78 (Algo) The Young Company has gathered the... The Young Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor Overhead (40% variable) Cost to manufacture Desired markup (50%) Target selling price $15 7 20 42 21 $63 The above cost information is based on 10,800 units. A distributor has offered to buy 3,300 units at a price of $44 per unit. The distributor claims this special order would not disturb regular sales at $63. Special packaging and other selling expenses would be an additional $0.50 per unit for the special order. How many units of regular sales could be lost before this contract is not profitable?

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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A moodle1.du.edu.om The company produced 1000 units in January. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. She responded with the following information. Variable Total Costs Costs Material Costs 35000 45000 Labor Costs 55000 67500 Production Facilities cost 2500 10500 On the basis of above information, what is the estimated cost for 1600 units from the following? Select one: a. 173000 b. 158500 c. 178500 d. 163750 II
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