Short-term Decisions: 2 points. XYZ Company Inc. has an annual plant capacity of 25,000 units. XYZ...

Transcribed Image Text:

Short-term Decisions: 2 points. XYZ Company Inc. has an annual plant capacity of 25,000 units. XYZ has the following sales and cost data: Sales (20,000 units @ $50/unit) Manufacturing costs: Variable $1,000,000 $40/unit (materials, labor, overhead) Fixed overhead $30,000 Selling & administrative expenses Variable (commissions of $1/unit) $2/unit Fixed $7,000 XYZ has received a special order for 4,000 units at a selling price of $45 each. XYZ has capacity to fill the order. If XYZ accepts the order, sales commissions will be reduced by one-half. Given this information, answer the following questions: Gain/loss if XYZ accepts the order Should XYZ accept the order? ABC uses 10,000 units of part #300 as a component to assemble one of its products. Each unit can be produced by another division of ABC Short-term Decisions: 2 points. XYZ Company Inc. has an annual plant capacity of 25,000 units. XYZ has the following sales and cost data: Sales (20,000 units @ $50/unit) Manufacturing costs: Variable $1,000,000 $40/unit (materials, labor, overhead) Fixed overhead $30,000 Selling & administrative expenses Variable (commissions of $1/unit) $2/unit Fixed $7,000 XYZ has received a special order for 4,000 units at a selling price of $45 each. XYZ has capacity to fill the order. If XYZ accepts the order, sales commissions will be reduced by one-half. Given this information, answer the following questions: Gain/loss if XYZ accepts the order Should XYZ accept the order? ABC uses 10,000 units of part #300 as a component to assemble one of its products. Each unit can be produced by another division of ABC