Question: Its the same exercise, Please I need help ASAP THANKS A LOT At a time when extra capacity exists, a special order is received for


Its the same exercise, Please I need help ASAP THANKS A LOT
At a time when extra capacity exists, a special order is received for 100 chairs at a for Ai a tine of 55,000 . If the order is accepted, variable selling costs will be reduced by 80% varisble administrative expenses will be cut by 50% while direct materials will be lowe 6. is there an opportunity cost? Yes or no and WHY? 7. What is the relavant outlay associated with the special order? 5. 8. Should the order be accepted? Yes or no and by how much (how much better would the cort? they followed your advice)? 9. YES ORNO AMOUNT OF BENEFIT If the company had 1,000 units on hand in finished goods, what would be the st Whentory under absorption costing as shown on the GAAP balance sheet? 10. What is the contribution margin per unit of regular product? 11. NOW ASSUME that the company is currently operating AT CAPACITY. What would be the "real cost" as used in this course (and book) of taking the special order? 12. Should the company accept the order, YES OR NO and BY HOW MUCH? YES OR NO AMOUNT OF BENEFIT 13. If the company sold 10,000 units during the year, the cost of goods sold under Variable Costing would be: OPTIONAL COMPUTATIONS FOR THIS
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
