AUDITING+ASSURANCE 12MONTH ACCESS CARD
AUDITING+ASSURANCE 12MONTH ACCESS CARD
17th Edition
ISBN: 9780135635131
Author: ARENS
Publisher: WILEY
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Chapter 2, Problem 15.1MCQ
To determine

Identify the correct option that explains the given statement.

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If annual demand is 60,000 units, the ordering cost is $30 per order, and the holding cost is $6 per unit per year, what is the optimal order quantity using the fixed-order quantity model?
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During its first year, Maple Corp. showed a $20 per-unit profit under absorption costing but would have reported a total profit of $18,000 less under variable costing. Suppose production exceeded sales by 600 units and an average contribution margin of 60% was maintained. a. What is the fixed cost per unit? b. What is the sales price per unit? c. What is the variable cost per unit? d. What is the unit sales volume if total profit under absorption costing was $220,000?
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