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Category > Accounting Posted 25 Apr 2017 My Price 5.00

Although the Missouri Company

5.3    Although the Missouri Company has the capacity to produce 16,000 units per plans call for mont hly production and sales of only 10,000 units at $15 each. Cos as follows:

Direct materials Direct labor

Variable factory overhead Fixed factory overhead Variable selling expense Fixed administrative expense

 

$ 5.00

3.00

0.75

1.50

0.25

1.00

http://test.transtutors.com/qimg/5aa026eb-a835-4b02-a95e-12f8ec435e3c.png$11.50

 

1.     Should the company accept a special order for 4,000 units @ $10?

2.      What is the maximum price the Missouri Company should be willing to p supplier who is interested in man ufacturing this product?

3.      What would be the effect on the monthly contribution margin if the sales pric to $14, resulting in a 10 percent increase in sales volume?

 



Answers

Alpha Geek
(8)
Status NEW Posted 25 Apr 2017 10:04 AM My Price 5.00

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Attachments

file 1493114915-1368048_1_636286085947904798_Special-order-analysis.xlsx preview (253 words )
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