u. P20,000 ABC Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: Per Unit Data Selling price Direct materials Direct labor P150 P26 P3 Variable manufacturing overhead Fixed manufacturing overhead Variable seilling expense Fixed selling and administrative expense The above per unit data are based on annual production of 8,000 units of the component. Direct labor can be considered to be a variable cost. P1 P17 P2 P18 The company has received a special, one-time-only order for 500 units of component D53. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. 4) Assuming that ABC has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit on the special order below which the company should not go? a. Р67 b. P30 C. P150 d. P47 5) What is the current contribution margin per unit for component D53 based on its selling price of P150 and its annual production of 8,000 units? a. Р83
u. P20,000 ABC Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: Per Unit Data Selling price Direct materials Direct labor P150 P26 P3 Variable manufacturing overhead Fixed manufacturing overhead Variable seilling expense Fixed selling and administrative expense The above per unit data are based on annual production of 8,000 units of the component. Direct labor can be considered to be a variable cost. P1 P17 P2 P18 The company has received a special, one-time-only order for 500 units of component D53. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. 4) Assuming that ABC has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit on the special order below which the company should not go? a. Р67 b. P30 C. P150 d. P47 5) What is the current contribution margin per unit for component D53 based on its selling price of P150 and its annual production of 8,000 units? a. Р83
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ABC Inc. manufactures industrial components. One of its products,
which is used in the construction of industrial air conditioners, is
known as D53. Data concerning this product are given below:
Per Unit
Data
Selling price
P150
Direct materials
P26
Direct labor
P3
P1
Variable manufacturing overhead
Fixed manufacturing overhead
Variable seilling expense
Fixed selling and administrative expense
The above per unit data are based on annual production of 8,000
units of the component. Direct labor can be considered to be a
variable cost.
P17
P2
P18
The company has received a special, one-time-only order for 500
units of component D53. There would be no variable selling expense
on this special order and the total fixed manufacturing overhead
and fixed selling and administrative expenses of the company would
not be affected by the order.
4) Assuming that ABC has excess capacity and can fill the order
without cutting back on the production of any product, what is
the minimum price per unit on the special order below which the
company should not go?
a. P67
b. P30
C. P150
d. P47
5)What is the current contribution margin per unit for component
D53 based on its selling price of P150 and its annual production
of 8,000 units?
a. P83
b. P118
С. Р32
d. P120
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