Assume that Cane expects to produce and sell 106,000 Betas during the current year. One of Cane’s sales representatives has found a new customer who is willing to buy 4,000 additional Betas for a price of $74 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order?
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Ответ:
The first part of the question is missing, so I looked for a similar question to fill in the blanks:
Relevant production costs per unit:
Direct material $30 Direct labor $20 Variable manufacturing overhead $7 Variable selling expenses $12 Total relevant costs per unit $69incremental revenue if special order is accepted = 4,000 x $74 = $296,000
incremental costs if special order is accepted = 4,000 x $69 = $276,000
financial advantage of accepting special order = $296,000 - $276,000 = $20,000
If the special order is accepted, operating profits will increase by $20,000
Ответ: