Swifty Corporation’s unit manufacturing cost is: Variable Costs $50 Fixed Costs 25 A special order for 2000 units has been received from a foreign company. The unit price requested is $54. The normal unit price is $92. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be $34000. $(42000). $(46000).

Swifty Corporation’s unit manufacturing cost is: Variable Costs $50 Fixed Costs 25 A special order for 2000 units has been received from a foreign company. The unit price requested is $54. The normal unit price is $92. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be $34000. $(42000). $(46000).

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?
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Sheffield Corp. incurred the following costs for 82000 units: Variable costs Fixed costs O $15.58 O $8.70 O $8.88 O $10.80 $549400 Sheffield has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4200 for shipping. If Sheffield wants to earn $4000 on the order, what should the unit price be? Save for Later 392000 Attempts: 0 of 1 used Submit Answer
Sheridan Company incurred the following costs for 54000 units: Variable costs $324000 Fixed costs 392000 Sheridan has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2800 for shipping.If Sheridan wants to earn $4000 on the order, what should the unit price be? $9.40 $10.66 $8.00 $16.66
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A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $171. A special order from a foreign company has been received for 5000 units at $135 a unit. In order to fulfill the order, 2800 units of regular sales would have to be foregone.The opportunity cost associated with this order is $478800. $378000. $268800. $210000.
Marie Company’s unit manufacturing costs are: Variable Cost P50 Fixed Cost 25 A special order for 2,000 units has been received from a foreign company. The unit selling price requested is P55. The normal unit selling price is P80. If the order is accepted, unit variable costs will increase by P2 for additional freight costs. Marie has sufficient capacity to accommodate the special order. How much is the incremental profit or loss if the order is accepted?
Marigold Corp. incurred the following costs for 52000 units: Variable costs $312000 Fixed costs 392000 Marigold has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $2400 for shipping. If Marigold wants to earn $4000 on the order, what should the unit price be? O $8.00 O $10.74 O $9.20 O $16.74
Concord Corporation incurred the following costs for 66000 units: Variable costs $396000 Fixed costs 392000 Concord has received a special order from a foreign company for 3500 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4900 for shipping.If Concord wants to break even on the order, what should the unit sales price be? $11.94 $7.40 $6.00 $13.34
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