Z Motor Inc. manufactures and sell a range of automobile parts. The regular price and costs data for Part C are as follows: Price and Costs Data for Part C Price and Costs Amount Market selling price $58 Variable costs per unit $22 Fixed costs per unit (allocated) $15 Z Motor received an offer from an exporter to sell 3,000 units of Part C for $35 per unit. The company has enough capacity to fulfil this offer. Acceptance of this offer will not affect the company’s regular sale. The amount of profit or loss from the acceptance of the offer would be: Group of answer choices $66,000 loss $39,000 profit $69,000 loss $105,000 profit
Z Motor Inc. manufactures and sell a range of automobile parts. The regular price and costs data for Part C are as follows: Price and Costs Data for Part C Price and Costs Amount Market selling price $58 Variable costs per unit $22 Fixed costs per unit (allocated) $15 Z Motor received an offer from an exporter to sell 3,000 units of Part C for $35 per unit. The company has enough capacity to fulfil this offer. Acceptance of this offer will not affect the company’s regular sale. The amount of profit or loss from the acceptance of the offer would be: Group of answer choices $66,000 loss $39,000 profit $69,000 loss $105,000 profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Z Motor Inc. manufactures and sell a range of automobile parts. The regular price and costs data for Part C are as follows:
Price and Costs Data for Part CPrice and Costs | Amount |
---|---|
Market selling price | $58 |
Variable costs per unit | $22 |
Fixed costs per unit (allocated) | $15 |
Z Motor received an offer from an exporter to sell 3,000 units of Part C for $35 per unit. The company has enough capacity to fulfil this offer. Acceptance of this offer will not affect the company’s regular sale.
The amount of profit or loss from the acceptance of the offer would be:
Group of answer choices
$66,000 loss
$39,000 profit
$69,000 loss
$105,000 profit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education