BRIGHTLIGHT INC. manufactures lamps and expects to sell 3 5 0 , 0 0 0 units next

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Question:

BRIGHTLIGHT INC. manufactures lamps and expects to sell

350, 000

units next year at $

21

per unit. Planned per

-

unit manufacturing costs at that level of production are as follows:

Variable $

9.00

Fixed $

5.00

A new customer approaches the entity offering to buy

15, 000

lamps at $

11

each. The entity can produce additional units with no change in fixed manufacturing costs or per

-

unit variable cost. The only additional fixed cost for this order is for packing and shipping, estimated at $

3, 800 .

REQUIRED:

Determine the effect of accepting the special order on planned profit for the year. Assume that filling the special order will not affect regular sales. Show Computations.

Related Book For answer-question

Cost Accounting

ISBN: 978-0759338098

14th edition

Authors: William K. Carter

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Posted Date: Apr 20, 2024 05:35 AM

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BRIGHTLIGHT INC. manufactures lamps and expects to sell 3 5 0 , 0 0 0 units next

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To determine the effect of accepting the special order on planned profit for the year well compare t... View the full answer

Cost Accounting

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