Question 1
Which of the following is true of relevant information?
◦ All fixed costs are relevant.
◦ All Future revenues and expenses are relevant.
◦ Future
◦ All fixed costs are not relevant.
Question 2
Zephram Corporation has a plant capacity of 200,000 units per month. Unit costs at capacity are:
| Marketing/distribution-variable | 4.60 |
Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted Zephram Corporation about purchasing 2,500 units at $24.00 each. Current sales would not be affected by the one-time-only special order. What is Zephram's change in operating profits if the one-time-only special order is accepted?
◦ $11,000 increase
◦ $31,500 increase
◦ $22,500 increase
◦ $49,000 increase
Incomplete dominance in the four-o'clock plant.
Plant Cell
Plant
Plant
plant diagram
Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ...