Your Company makes and sells electric fans. Each fan regularly sells for $42. Your Company is now selling 120,000 fans through regular channels each period. The following cost data per fan is based on a full capacity of 150,000 fans produced each period. Direct materials... $8 Direct labor $9 Manufacturing overhead (60% variable and 40% unavoidable fixed) $10 A special order has been received for a sale of 25,000 fans to an overseas customer at $30 per fan. The only selling costs that would be incurred on this order would be $4 per fan for shipping. What is increase in income if the special order is accepted? gorup of answers $75,000 $50,000 $125,000 $175,000 $225,000
Your Company makes and sells electric fans. Each fan regularly sells for $42. Your Company is now selling 120,000 fans through regular channels each period. The following cost data per fan is based on a full capacity of 150,000 fans produced each period. Direct materials... $8 Direct labor $9 Manufacturing overhead (60% variable and 40% unavoidable fixed) $10 A special order has been received for a sale of 25,000 fans to an overseas customer at $30 per fan. The only selling costs that would be incurred on this order would be $4 per fan for shipping. What is increase in income if the special order is accepted? gorup of answers $75,000 $50,000 $125,000 $175,000 $225,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Your Company makes and sells electric fans. Each fan regularly sells for $42. Your Company is now selling 120,000 fans through regular channels each period. The following cost data per fan is based on a full capacity of 150,000 fans produced each period.
|
Direct materials... |
$8 |
|
Direct labor |
$9 |
|
Manufacturing |
$10 |
A special order has been received for a sale of 25,000 fans to an overseas customer at $30 per fan. The only selling costs that would be incurred on this order would be $4 per fan for shipping. What is increase in income if the special order is accepted?
gorup of answers
$75,000
$50,000
$125,000
$175,000
$225,000
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