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Author Question: DataSave is a manufacturer of USB Flash Drives. Their 16GB model wholesales for $32. DataSave has ... (Read 88 times)

ARLKQ

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DataSave is a manufacturer of USB Flash Drives. Their 16GB model wholesales for $32. DataSave has been approached by a major sports franchise with a special order for 25,000 16GB flash drives in their team colours at a price of $18 each. The special colouring will not add any new costs. DataSave's total cost of production for this model is $22 per USB, as follows:

Variable costs:
         Direct materials$11.50
         Direct labour     3.75
         Variable overhead     2.00
Fixed overhead     4.75
Total cost$22.00

Prepare an incremental analysis to determine whether DataSave should accept the special sales order assuming fixed costs would not be affected by the special order.


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Marked as best answer by ARLKQ on Jan 4, 2020

Dnite

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ARLKQ

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Reply 2 on: Jan 4, 2020
Great answer, keep it coming :)


hramirez205

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Reply 3 on: Yesterday
:D TYSM

 

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