FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please help me with show all calculation thanku
Finn Flying Company produces and
sells kites for $51. The company has
the capacity to produce 10,600 kites
each period. At capacity, the costs
assigned to each unit are as follows:
Unit-level costs $31
Product-level costs $16
Facility-level costs $11 The company
has received a special order for 230
kites. Assuming that no sales to regular
customers will be lost if the order is
accepted, at what selling price will the
company be indifferent between
accepting and rejecting the special
order?
$70
$60
$31
$65
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Transcribed Image Text:Finn Flying Company produces and sells kites for $51. The company has the capacity to produce 10,600 kites each period. At capacity, the costs assigned to each unit are as follows: Unit-level costs $31 Product-level costs $16 Facility-level costs $11 The company has received a special order for 230 kites. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order? $70 $60 $31 $65
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