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Author Question: Venus Corporation provided the following information regarding its single product:Direct materials ... (Read 63 times)

s.tung

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on: Jan 4, 2020
Venus Corporation provided the following information regarding its single product:

Direct materials used $240,000
Direct labour incurred$420,000
Variable manufacturing overhead $160,000
Fixed manufacturing overhead $100,000
Variable selling and administrative expenses $60,000
Fixed selling and administrative expenses $20,000

The regular selling price for the product is $75.  The annual quantity of units produced and sold is 20,000 units (the costs above relate to the 20,000 units production level). There was no beginning inventory.


What would be the effect on Venus Corporation's operating income of accepting a special order for 3,000 units at a sale price of $65 per product? The company has excess capacity and regular sales will not be affected by this special order.
◦ Increase by $327,000
◦ Decrease by $63,000
◦ Decrease by $327,000
◦ Increase by $63,000
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by s.tung on Jan 4, 2020

harveenkau8139

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Reply #1 on: Jan 4, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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s.tung

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Reply 2 on: Jan 4, 2020
YES! Correct, THANKS for helping me on my review

bblaney

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Reply 3 on: Yesterday
Excellent

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