Theta company has received a special one-time order for 1,500 light fixtures (units) at P15 per unit. It currently produces and sells 7,500 units at 16.00 each. This level represents 75% of its capacity. Production costs for these units are P19.50 per unit, which includes 13.00 variable cost and 6.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of P725 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If the company wishes to earn 1,375 on the special order, the size of the order would need to be: 1) 2,100 units. 2) 4,200 units. 3) 100 units. 4) 1,050 units. 5) 935 units.

Theta company has received a special one-time order for 1,500 light fixtures (units) at P15 per unit. It currently produces and sells 7,500 units at 16.00 each. This level represents 75% of its capacity. Production costs for these units are P19.50 per unit, which includes 13.00 variable cost and 6.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of P725 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If the company wishes to earn 1,375 on the special order, the size of the order would need to be: 1) 2,100 units. 2) 4,200 units. 3) 100 units. 4) 1,050 units. 5) 935 units.

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Description: Theta company has received a special one-time order for 1,500 light fixtures (units) at P15 per unit. Itcurrently produces and sells 7,500 units at 16.00 each. This level represents 75% of its capacity.Production costs for these units are P19.50 per

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 3PB: Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in...

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