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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Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead cost
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