Yankee Fixtures has received a special one-time order for 1,800 light fixtures at $4.50 per unit. Yankee currently produces and sells 6,000 units at $6.00 each. This level represents 80% of its capacity. Production costs for these units are $3.20 per unit, which includes $1.30 variable cost and $1.90 fixed cost. To produce the special order, a new tool must be purchased at a cost of $1,400 with zero salvage value. Management expects no other cost changes as a result of the additional production. If Yankee wishes to earn $1,300 on the special order, how many units would need to be sold? (Round your answer to nearest number)
Yankee Fixtures has received a special one-time order for 1,800 light fixtures at $4.50 per unit. Yankee currently produces and sells 6,000 units at $6.00 each. This level represents 80% of its capacity. Production costs for these units are $3.20 per unit, which includes $1.30 variable cost and $1.90 fixed cost. To produce the special order, a new tool must be purchased at a cost of $1,400 with zero salvage value. Management expects no other cost changes as a result of the additional production. If Yankee wishes to earn $1,300 on the special order, how many units would need to be sold? (Round your answer to nearest number)
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...
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Yankee Fixtures has received a special one-time order for 1,800 light fixtures at $4.50 per unit. Yankee currently produces and sells 6,000 units at $6.00 each. This level represents 80% of its capacity. Production costs for these units are $3.20 per unit, which includes $1.30 variable cost and $1.90 fixed cost. To produce the special order, a new tool must be purchased at a cost of $1,400 with zero salvage value. Management expects no other cost changes as a result of the additional production. If Yankee wishes to earn $1,300 on the special order, how many units would need to be sold? (Round your answer to nearest number)
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