ow Unit-level costs $285,000 Fixed costs $75,000 Total costs (a) $360,000 Markup (ax0.25) 90,000 Sales price per unit (b/15,000) $30 Required Fanning has excess capacity and receives a special order for 9,000 clocks for $23 each. Calculate the contribution margin per unit. Based on this, should fanning accept the special order? b) prepared a contribution margin income statement
ow Unit-level costs $285,000 Fixed costs $75,000 Total costs (a) $360,000 Markup (ax0.25) 90,000 Sales price per unit (b/15,000) $30 Required Fanning has excess capacity and receives a special order for 9,000 clocks for $23 each. Calculate the contribution margin per unit. Based on this, should fanning accept the special order? b) prepared a contribution margin income statement
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...
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Fanning company which produces and sells a small digital clock bases its pricing strategy on a 25 percent markup on total cost based on annual production costs for $15,000 units of products, computations for the sales price per clock follow
Unit-level costs $285,000
Fixed costs $75,000
Total costs (a) $360,000
Markup (ax0.25) 90,000
Sales price per unit (b/15,000) $30
Required
Fanning has excess capacity and receives a special order for 9,000 clocks for $23 each. Calculate the contribution margin per unit. Based on this, should fanning accept the special order?
b) prepared a contribution margin income statement for the special order.
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