2017 Fal Ten × \\ CHAPTER 7Budgeting-xrm Recitation 11192017- xN Correct C D ezt

Question

2017 Fal Ten × CHAPTER 7Budgeting-xrm Recitation 11192017- xN Correct C D ezto.mheducation.comhm.tpx Apps T Doom anjobs. Inde BosdArgent on Do D product Dunk NDH M McGraw-Hill Connect Delta Company proauces a singie produt The coct of producing and seling a singka unit of thie product at the compary s normel scivity level t 90,400 unts per year E Oirect materials oed marudacturi Fued seling and administratve expenses 1.00 ing ovarhead The normal seling price is 526 per unt The canpaty's capacity is 121 200 unds per year An order has been receved bom a mai-order souss for 1900 unts at a epeciasl price ol $23 00 per unt. This order would net atect regular saa Required: he eted by he much wei asual profits te iscreapad or decoreaped? (The order wil not charge the company's tetai fsed cots by staishing a minimum seling price for theee uts7 98ound your asswee to 2 doceral places cret per o'e O Type here to search

Explanation / Answer

Per unit 1900 units Incremental revenue 23 43700 Costs: Direct materials 2.2 4180 Direct labor 2 3800 variable manufacturing overhead 0.8 1520 Variable selling and administrative expenses 2 3800 Incremental income(loss) 30400 Annual profits would increase by $30400 2 Relavent cost per unit = Variable selling and administrative expenses=$2

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