1.Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of...
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Question:
1.Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs:
Direct material ______$5/kg
Direct labor_________$10/hour
Total Manufacturing overhead __________________$30000
The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost).
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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