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.. $12 Direct labor. $17 Manufacturing overhead (60% variable and 40% unavoidable fixed). $40 A special order has been received for a sale of 25.000 fans to an overseas customer. The only selling costs that would be incurred on this order would be $4 per fan for shipping. What is the minimum selling price per fan (breakeven) in negotiating a price for this special order OA S29 OB. $45 OC. 557 O D. $49 OE. S53

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.. $12 Direct labor. $17 Manufacturing overhead (60% variable and 40% unavoidable fixed). $40 A special order has been received for a sale of 25.000 fans to an overseas customer. The only selling costs that would be incurred on this order would be $4 per fan for shipping. What is the minimum selling price per fan (breakeven) in negotiating a price for this special order OA S29 OB. $45 OC. 557 O D. $49 OE. S53

Name: Your Company makes and sells electric fans. Each fan regularly sells
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Description: 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 pe

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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Red Jeep Manufacturing currently produces 3,000 tires per month. The following total cost data for 3,000 tires applies to sales to regular customers: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total $114,000 42,000 57,000 60,000 $273,000 Assume Red Jeep sells everything it produces. The plant is considering expanding production to 4,000 tires. What is the total cost of producing 4,000 tires? O $364,000 $202,000 $273,000 $344,000
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