The costs, revenue, and net operating income associated with the Scrub Daddy are given below: Selling Price per Unit $30 Variable Cost per Unit Direct Material per Unit $12 Direct Labor per Unit $4 Variable MOH per Unit $2 Shark Lori Greiner has an order for 4 units of Scrub Daddy sponges. The orderer only wants to pay $28 per unit. What is the advantage/disadvantage per unit of accepting the offer assuming Scrub Daddy has sufficient idle capacity? Round your answer to the nearest dollar.
The costs, revenue, and net operating income associated with the Scrub Daddy are given below: Selling Price per Unit $30 Variable Cost per Unit Direct Material per Unit $12 Direct Labor per Unit $4 Variable MOH per Unit $2 Shark Lori Greiner has an order for 4 units of Scrub Daddy sponges. The orderer only wants to pay $28 per unit. What is the advantage/disadvantage per unit of accepting the offer assuming Scrub Daddy has sufficient idle capacity? Round your answer to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The costs, revenue, and net operating income associated with the Scrub Daddy are given below:
Selling Price per Unit | $30 |
Variable Cost per Unit | |
Direct Material per Unit | $12 |
Direct Labor per Unit | $4 |
Variable MOH per Unit | $2 |
Shark Lori Greiner has an order for 4 units of Scrub Daddy sponges. The orderer only wants to pay $28 per unit.
What is the advantage/disadvantage per unit of accepting the offer assuming Scrub Daddy has sufficient idle capacity?
Round your answer to the nearest dollar.
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