Question: QUESTION 10 Jake Company is considering a special order for 5,000 units at a price of $60 per unit. Jake's product normally sells for $84
QUESTION 10 Jake Company is considering a special order for 5,000 units at a price of $60 per unit. Jake's product normally sells for $84 per unit and has variable manufacturing costs of $45 per unit and variable selling costs of $9 per unit. Fixed manufacturing costs are $150,000 and fixed selling and administrative costs are $300,000. Jake has capacity to produce 30,000 units and is currently producing 20,000 units. If the order is accepted.. Jake will incur legal fees of $7,500 in connection with the order, but there will be no variable selling costs on the special order. What are the differential costs associated with the special order? O a $232,500 Ob. $67,500 . $127,500 Od. $300,000 QUESTION 11 Jake Company is considering a special order for 5,000 units at a price of 560 per unit. Jake's product normally sells for $84 per unit and has variable manufacturing costs of $45 per unit and variable selling costs of $9 per unit. Fixed manufacturing costs are $150,000 and fixed selling and administrative costs are $300,000. Jake has capacity to produce 30,000 units and is currently producing 20,000 units. If the order is accepted, Jake will incur legal fees of $7,500 in connection with the order, but there will be no variable selling costs on the special order. What are the differential revenues associated with the special order? O a. $75,000 Ob. $120.000 Oc $420,000 O d. $300,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
