Rianne Company produces a light fixture with the following unit cost:
Direct materials $2
Di...
Business, 11.05.2021 16:20, heybrothwrlogan
Rianne Company produces a light fixture with the following unit cost:
Direct materials $2
Direct labor 1
Variable overhead 3
Fixed overhead 2
Unit cost $8
The production capacity is 300,000 units per year. Because of a depressed housing market, the company expects to produce only 180,000 fixtures for the coming year. The company also has fixed selling costs totaling $500,000 per year and variable selling costs of $1 per unit sold. The fixtures normally sell for $12 each.
At the beginning of the year, a customer from a geographic region outside the area normally served by the company offered to buy 100,000 fixtures for $7 each. The customer also offered to pay all transportation costs. Since there would be no sales commissions involved, this order would not have any variable selling costs.
Required:
Conceptual Connection: Based on a quantitative (numerical) analysis, should the company accept the order?
Answers: 2
Business, 21.06.2019 15:00, queensquishy2004
Do you have to get teased in the police academy?
Answers: 1
Business, 22.06.2019 22:00, tannercarr3441
As a general rule, when accountants calculate profit they account for explicit costs but usually ignorea. certain outlays of money by the firm. b. implicit costs. c. operating costs. d. fixed costs.
Answers: 2
Business, 23.06.2019 00:30, Chen19241
2. which of the following statements about interest is true? a. interest is a one-time fee that you pay for lending money. b. interest is expressed as a percentage of the amount you are borrowing. c. because interest rates tend to be small numbers, they typically don't have much effect on the price of the goods you're purchasing. d. interest is a penalty that you pay when you don't pay your bills on time.
Answers: 1
Business, 23.06.2019 02:00, gthif5424
Which of the following describes a situation of scarcity? a. someone offers free advice about getting into college. b. someone distributes free bottles of water at the beach. c. a child charges friends for a ride on his new bike. d. a person lets the kids in the neighborhood use his pool.
Answers: 1
Biology, 19.09.2019 01:40
Mathematics, 19.09.2019 01:40
English, 19.09.2019 01:40