Peach has received a special order for 10,000 units of its product. The product normally sells for $29 and has the following manufacturing costs: Per unit Direct materials $ 6 Direct labor 5 Variable manufacturing overhead 3 Fixed manufacturing overhead 11 Unit cost $ 25 Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $10,000 incremental profit? Multiple Choice $25 $22 $29 $15

Peach has received a special order for 10,000 units of its product. The product normally sells for $29 and has the following manufacturing costs: Per unit Direct materials $ 6 Direct labor 5 Variable manufacturing overhead 3 Fixed manufacturing overhead 11 Unit cost $ 25 Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $10,000 incremental profit? Multiple Choice $25 $22 $29 $15

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EA: Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special...

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Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?
Peach has received a special order for 11,000 units of its product. The product normally sells for $22 and has the following manufacturing costs: Per unitDirect materials $ 6Direct labor 4Variable manufacturing overhead 3Fixed manufacturing overhead 4Unit cost $ 17 Assume that Peach has sufficient capacity to fill the order. What price should Peach charge to make a $11,000 incremental profit? Multiple Choice 1. $22 2.$203.$174.$14
Question T Pawn has received a special order for 17,000 units of its product. The product normally sells for $31 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit 6 5 9 7 AZ Assume that Pawn has sufficient capacity to fill the order. What price should Pawn charge to make a $17,000 incremental profit? (Do not include $ sign.)
Help Crystal has received a special order for 4,000 units of its product. The product normally sells for $330 and has the following manufacturing costs: Save & Exit Submit Direct materials Per unit Direct labor $116 63 Variable manufacturing overhead Fixed manufacturing overhead 49 22 Unit cost $250 Crystal is currently operating at full capacity and cannot fill the order without harming normal production and sales. What minimum price should Crystal charge to earn an incremental profit of $136,000? Multiple Choice $293 $330 Next > 17PM of 25
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Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: Саpаcity 20,000 Demand 20,000 Selling price $65 VC per unit $35 Total FC $10,000 Division B would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made by an outside company for $38 per unit Division B requires 5,000 units of the part each period. If Division A sells to Division B rather than to outside customers, the variable cost be unit would be $1 lower. What should be the lowest acceptable transfer price from the perspective of Division A?
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