Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order...
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Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs Direct materials Direct labor $170 Manufacturing support Marketing costs Fixed conte Manufacturing support Marketing costs Total costs Markup (40%) 268 $938 Targeted selling price What is the change in operating profits if the one-time-only special order for 1000 units is accepted for $580 a unit by Red Rose? O $139,330 increase in operating profits O $140,000 decrease in operating profits O $139,330 decrease in operating profits O $140,000 increase in operating profits 70 125 75 175 55 670 Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs Direct materials Direct labor $170 Manufacturing support Marketing costs Fixed conte Manufacturing support Marketing costs Total costs Markup (40%) 268 $938 Targeted selling price What is the change in operating profits if the one-time-only special order for 1000 units is accepted for $580 a unit by Red Rose? O $139,330 increase in operating profits O $140,000 decrease in operating profits O $139,330 decrease in operating profits O $140,000 increase in operating profits 70 125 75 175 55 670
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Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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