North Network Sdn. Bhd. (NNSB) is producing pen, named Nano-XFine. In producinga unit of Nano-XFine that normally sells for RM45 each, it costs RM30 per unit (RM20variable and RM10 fixed). Recently, a foreign wholesaler offers to buy 4,000 unitsNano-XFine at RM23 each. NNSB will incur special shipping costs of RM1 per unitNano-XFine. It is assumed that NNSB has excess operating capacity.А.REQUIRED:Analyze the offer made and suggest whether NNSB should accept it. Show all yourcalculations.Muhammad Teamwork Sdn. Bhd. (MTSB) makes unfinished bookcases that is sold forRM60 each. Production costs per unit are RM30 variable and RM10 fixed respectively.Due to the unused capacity, MTSB is considering of processing further the unfinishedbookcases which it can sell for RM70 each. Variable finishing costs are expected to beRM6 per unit with no increase in fixed costs.REQUIRED:(a)Prepare the incremental analysis on per unit basis showing whether MTSBshould sell unfinished bookcases or process it further.(b)Based on your analysis, what decision should the management make? Explain.B.

When management must decide whether to accept unusual customer requests, special-order decisions are…

North Network Sdn. Bhd. (NNSB) is producing pen, named Nano-XFine. In producing a unit of Nano-XFine that normally sells for RM45 each, it costs RM30 per unit (RM20 variable and RM10 fixed). Recently, a foreign wholesaler offers to buy 4,000 units Nano-XFine at RM23 each. NNSB will incur special shipping costs of RM1 per unit Nano-XFine. It is assumed that NNSB has excess operating capacity. A. REQUIRED: Analyze the offer made and suggest whether NNSB should accept it. Show all your calculations.

North Network Sdn. Bhd. (NNSB) is producing pen, named Nano-XFine. In producing a unit of Nano-XFine that normally sells for RM45 each, it costs RM30 per unit (RM20 variable and RM10 fixed). Recently, a foreign wholesaler offers to buy 4,000 units Nano-XFine at RM23 each. NNSB will incur special shipping costs of RM1 per unit Nano-XFine. It is assumed that NNSB has excess operating capacity. A. REQUIRED: Analyze the offer made and suggest whether NNSB should accept it. Show all your calculations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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