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Author Question: Roadrunner Manufacturing produces Item Q with variable manufacturing costs of $16/unit. The selling ... (Read 49 times)

cookcarl

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Roadrunner Manufacturing produces Item Q with variable manufacturing costs of $16/unit.  The selling price of Item Q is $20/unit.  The fixed manufacturing overhead cost is $75,000.  A normal production run includes 150,000 units.  Roadrunner Manufacturing has discovered an additional process to change Item Q into Item QR.  Additional costs are estimated at $3/unit.  Item QR would sell for $24/unit.  Additional fixed manufacturing overhead costs of $4,500 would be incurred if Item QR is produced.  There would be no change in the number of units produced.

What would be the operating income for Item QR?


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Marked as best answer by cookcarl on Jan 4, 2020

vseab

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cookcarl

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Reply 2 on: Jan 4, 2020
Excellent


xthemafja

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Reply 3 on: Yesterday
:D TYSM

 

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