Variable costs for a product is $60 and fixed costs (including staff salaries, and maintenance) amount to $4000 per month. The price of product A is $113. The company operates only 26 days a month and produces 125 units per day. But during one-weekday demand was 115 units. The cost of lost sales is $9 per unit. Leftover products can be sold for $50 per unit. What was the total profit for this one day?

Variable costs for a product is $60 and fixed costs (including staff salaries, and maintenance) amount to $4000 per month. The price of product A is $113. The company operates only 26 days a month and produces 125 units per day. But during one-weekday demand was 115 units. The cost of lost sales is $9 per unit. Leftover products can be sold for $50 per unit. What was the total profit for this one day?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...

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