Question
1. If West Star received a special order for 500 computers at a price of $275, what will be the impact on the company's profit
1. If West Star received a special order for 500 computers at a price of $275, what will be the impact on the company's profit if the order is accepted? (Assume that other variables do not change).
- Direct materials$48
- Direct labor$90
- Variable manufacturing overhead$62
- Direct fixed manufacturing overhead$40
- Indirect fixed manufacturing overhead$40
2. Newell Company presently has three product lines: paper, stamps, and computer ribbons The company is considering discontinuing the stamp line. Given the following information, if Newel discontinues the stamp line, what would the net income be?
- Sales revenue$48,000
- Variable costs($30,000)
- Direct fixed costs($12,000)
- Indirect fixed costs($9,000)
- Net Loss($3,000)
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Accounting Texts and Cases
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
13th edition
1259097129, 978-0073379593, 007337959X, 978-1259097126
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