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Teavee Corp manufactures rocking horses. The cost of producing the rocking horses at the company's current activity level of 6,000 units per month is: Variable manufacturing costs per unit Fixed manufacturing costs per unit $10 $8 The normal selling price is $65 per horse. The company's total productive capacity is 7,000 units per month. Teavee Corp has received an offer from an overseas customer for 1,000 units at $60 per unit. Compute the total differential income from accepting the special order.

Teavee Corp manufactures rocking horses. The cost of producing the rocking horses at the company's current activity level of 6,000 units per month is: Variable manufacturing costs per unit Fixed manufacturing costs per unit $10 $8 The normal selling price is $65 per horse. The company's total productive capacity is 7,000 units per month. Teavee Corp has received an offer from an overseas customer for 1,000 units at $60 per unit. Compute the total differential income from accepting the special order.

FINANCIAL ACCOUNTING
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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Teavee Corp manufactures rocking horses. The cost of producing the rocking horses at the company's current activity level of 6,000 units per month is: Variable manufacturing costs per unit Fixed manufacturing costs per unit $10 $8 The normal selling price is $65 per horse. The company's total productive capacity is 7,000 units per month. Teavee Corp has received an offer from an overseas customer for 1,000 units at $60 per unit. Compute the total differential income from accepting the special order.
Transcribed Image Text:Teavee Corp manufactures rocking horses. The cost of producing the rocking horses at the company's current activity level of 6,000 units per month is: Variable manufacturing costs per unit Fixed manufacturing costs per unit $10 $8 The normal selling price is $65 per horse. The company's total productive capacity is 7,000 units per month. Teavee Corp has received an offer from an overseas customer for 1,000 units at $60 per unit. Compute the total differential income from accepting the special order.
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