a company that produces and sells 4,000 units per month,

Project Description:

a company that produces and sells 4,000 units per month, with the capacity to produce 5,000 units per month, is evaluating a one-time, special order for 2,000 units from a large chain store. accepting the order will increase variable manufacturing costs and certain fixed selling and administrative costs. it will also require the company to forego the sale of 1,000 units to regular customers. requiredpresented below are a number of statements related to the proposal followed by a list of cost terms. for each statement, select the most appropriate cost term. each term is used only once. statements 1. cost of existing equipment used to produce special order2. lost contribution margin from foregone sales to regular customers3. increased revenues from special order4. variable cost of 4,000 units sold to regular customers5. increase in fixed selling and administrative expenses 6. revenues from 4,000 units sold to regular customers 7. salary paid to current supervisor who oversees manufacture of special order 8. increased variable costs of special order cost termsa. irrelevant variable outlay costb. irrelevant fixed outlay costc. sunk costd. relevant variable outlay cost e. relevant fixed outlay costf. opportunity costg. relevant revenuesh. irrelevant revenues
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Price Type: Negotiable

Total Proposals: 9
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