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Author Question: Excellent Manufacturers Inc. has a current production level of 20,000 units per month. Unit costs at ... (Read 130 times)

Capo

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Question 1

Employee morale at Dos Santos, Inc., is very high. This type of information is an example of ________.
◦ qualitative factors
◦ quantitative factors
◦ irrelevant factors
◦ financial factors

Question 2

Excellent Manufacturers Inc.  has a current production level of 20,000 units per month. Unit costs at this level are: 

Direct materials$0.26
Direct labor0.40
Variable overhead0.16
Fixed overhead0.21
Marketing - fixed0.25
Marketing/distribution - variable0.42

Current monthly sales are 18,000 units. Jax Company has contacted Excellent about purchasing 1,550 units at $2.00 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff Company's change in operating profits if the special order is accepted?
◦ $4,929.00 increase in operating profits
◦ $4,929.00 decrease in operating profits
◦ $1,829.00 increase in operating profits
◦ $1,829.00 decrease in operating profits


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Marked as best answer by Capo on Mar 6, 2021

blfontai

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Capo

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


blakcmamba

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Reply 3 on: Yesterday
:D TYSM

 

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