At MM Productions, it costs $98 per unit ($40 variable and $58 fixed) to make a...
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At MM Productions, it costs $98 per unit ($40 variable and $58 fixed) to make a headphone that normally sells for $150. A foreign wholesaler offers to buy 1,000 units at $105 each. MM Productions will incur special shipping costs of $1 per unit. Assuming that MM Productions has excess operating capacity. indicate the net income (loss) MM Productions would realize by accepting the special order. Hint: Fixed costs are not avoidable whether the special order is accepted or rejected. Therefore, they will not affect the company's net income. • Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. • For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50). . If the amount is zero, enter 0. Reject or Accept Net Income Reject Order Accept Order Increase (Decrease) $ $ $ Revenues $ $ $ Variable Manufacturing Costs $ $ Shipping Cost $ Net Income / (Loss) $ $ LA At MM Productions, it costs $98 per unit ($40 variable and $58 fixed) to make a headphone that normally sells for $150. A foreign wholesaler offers to buy 1,000 units at $105 each. MM Productions will incur special shipping costs of $1 per unit. Assuming that MM Productions has excess operating capacity. indicate the net income (loss) MM Productions would realize by accepting the special order. Hint: Fixed costs are not avoidable whether the special order is accepted or rejected. Therefore, they will not affect the company's net income. • Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. • For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50). . If the amount is zero, enter 0. Reject or Accept Net Income Reject Order Accept Order Increase (Decrease) $ $ $ Revenues $ $ $ Variable Manufacturing Costs $ $ Shipping Cost $ Net Income / (Loss) $ $ LA
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Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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