Question: choices given include a - the opportunity cost involved in accepting Allen's order b - the incremental cost of manufacturing an additional 5,000 saws per
Burns Industries curtently manufactures and sells 20,000 power saws per month. although it has the capacity to produce 35 . oco units per month. At the 20.000-unt per-month level of production, the per-uni cost is $65, constigng of $40 in variable cosis and $25 in fixed costs. Burns sells its saws to retail stores for $80 each. Allen Distributorn hos offered to purchase 5,000 waws per month at a feduced price. Burns can manufarture these additonal units with no change in th present level of fixed manufacturing costs. Which of the following is not a fefevant fisctor in Burns' decision copceming whether to accept tie speciol order from Allen? Mulinge crobe Thut ocpontiny cent inwolved ir occepting Niens arder
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